Poorly Pearly endowed?

By THIS IS MONEY
Updated:

 

For the past 10 years I have paid £10.80 a month into a Pearl endowment. It matures next month. I contacted Pearl recently and they told me the maturity value is £1,697.08p. It seems a small amount - can this be right? SH, Wrexham

Justin Modray of independent financial advisers Chase de Vere says: According to your figures you appear to have put in £1,296. Your fund appears to be growing at about 5.3% net a year - this is not brilliant, but then it is also not too bad, given that endowments are safe and steady investments. Pearl is certainly not among the top performers but this kind of performance does not constitute a rip-off either. In the future if you want higher growth consider whether you should take more risk and select another type of investment instead. If you want to stick to endowments shop around for better performance. It is hard to find tables of performance figures so you may well need to ring around companies yourself.

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