Strong with-profits fund results from Friends Life

Mike Kipling, with-profits actuary at Friends Life, said the company had achieved “reasonable” investment returns on its with-profits funds in 2013, reflecting improvement in the world stock markets and strong rental demand.

The Friends Life FLAS (ex Sun Life Assurance Society policies) fund saw a return of 10.3 per cent in 2013 before tax, while the FLC (ex Axa Sun Life policies) fund earned 11.4 per cent in 2013.

The FP Fund (ex Friends Provident policies), returned 7.5 per cent and 9.5 per cent on its pre- and post-demutualisation policies respectively.

Mr Kipling said: “During 2013, world stock markets generally saw improved performance and returns on property were boosted by strong rental demand. However, the UK Gilt market performed poorly as a result of the potential rise in interest rates.”

Adviser view

Adam Carnall, financial adviser at Hathersage-based Andrew Stuart & Company IFA, said: “It’s about time with-profits got decent returns, but I still wouldn’t endorse them for the majority of people.”