Phoenix Life to limit some annual bonus rates

The provider will aim to provide better final bonus rates instead of higher annual bonuses, it said in a statement. Phoenix, which operates 13 closed with-profits funds, said it is likely to hold annual bonuses at low or nil rates "over the next few years" as this gives it more flexibility in managing the funds. This is because increasing annual bonuses will increase the guaranteed benefits the provider must promise, meaning it must adopt a more conservative investment strategy, Phoenix said. Final bonuses have also remained low in comparison to the heyday of annual and final bonus...