Friends Provident With Profits Funds

Friends Provident

PLC

Ownership status

The friends provident group in 2002, aquired the royal and sun alliance international financial services and their position was strengthened further in 2005 with the aquisition of the Lombard international assurance SA.

The friends provident group also manage funds originally taken out with; The Lincoln Life Assurance Company Limited, Dominion-Lincoln Assurance Limited ,Schroder Life Assurance Limited, NM Schroder Life Assurance Limited ,The National Mutual Life Association of Australasia Limited, and NM Life Assurance Limited.

Range of policy

Friends provident offer numerous different type of with-profit policy which are mainly occupied by the “main” policies which include; , unitised with-profit bonds, unitised pension plans, conventional individual life and conventional personal pensions.

Other types of policy include those of the UKP series which are as follows; conventional individual life, and conventional personal pension. Finally there are the FPLMA pensions which include; unitised individual bonds, unitised individual pensions, and conventional individual life.

Financial strength

Moody’s

Moody’s senior unsecured – Baa1

Equity implied – Ba2

Standard and Poor’s

Credit rating – A-/stable—

Asset Share

Year	Equities (%)	Property (%)	Fixed Interest and Other (%)
31 Dec 2002	32	13	13
31 Dec 2003	33	13	54
31 Dec 2004	36	12	52
30 June 2005	42	9	49
31 Dec 2005	44	8	48
30 June 2006	44	9	47
31 Dec 2006	45	9	46

Investment mix of Closed Fund

Year	Equities (%)	Property (%)	Fixed Interest and Other (%)
31 Dec 2002	50	8	42
31 Dec 2003	47	9	44
31 Dec 2004	47	7	46
31 Dec 2005 (previous basis – see Note)	53	7	40
31 Dec 2005 (revised basis – see Note)	68	10	22
31 Dec 2006	66	11	23

MVRs

After having steadily reduced their market value reductions over the pat few years, Friends provident have recently removed MVRs from all of their with-profits business. However this by no means indicates that with-profits policies managed by friends provident will remain MVR free

With-Profits return

	3m return	6m return	1yr return	3yr return	5yr return	10yr return	25yr return
WP life fund S10	0.3%	0.6%	0.9%	2.6%	7.5%	N/A	N/A
WP unitised life fund (closed)	0.1%	0.3%	0.7%	2.4%	7.3%	N/A	N/A
Sector average	0.4%	1.2%	2.9%	9.6%	16.2%	N/A	N/A

WP pension S1	1.0%	2.0%	4.0%	12.5%	21.8%	N/A	N/A
WP unitised pension fund	0.0%	0.0%	0.0%	0.1%	3.8%	N/A	N/A
Sector average	0.6%	1.4%	3.3%	10.9%	18.3%	N/A	N/A

WP endowment	N/A	N/A	N/A	N/A	N/A	1.1%	6.7%

Source: www.trustnet.com/life/funds

Source: www.trustnet.com/pen/funds

Source: money management

The information on this website is to be viewed as general information and does not constitute advice. Views and opinions expressed are those of the individual contributors. Individuals reading the site should not rely on any of the information contained within the site in making any decisions. DMP Marketing cannot be held responsible for any liability suffered by any individual as a result of information contained within the site. In the event that advice or help is required then independent advice should be sought from a regulated independent adviser.