Friends Provident has managed to raise or hold steady final bonus rates on its with-profits policies as markets start to recover.
The main with-profits fund produced an investment return of 7.5% in the first three quarters of 2010, as the proportion of the fund invested in equities and property increased from 25% to 40% since December 2009. "Financial markets recovered over the third quarter of 2010, although there is still some uncertainty about the pace and timing of a sustained recovery. To reflect this uncertainty we have been increasing our exposure to equities and property in a phased manner from the tactical low position of 16% at the end of 2008. "We have largely maintained our holdings of corporate bond...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes