Friends Life Deffered Distribution Fund, any thoughts?

stulaunch

Hi,
The friends life deffered distribution fund is something i have been paying £25 a month in for years and i just wondered if anybody had any thoughts on this fund?
I am no need, as yet, to take anything out, but have thought on this as my rainy day fund.

I have never taken advice on this fund since taking it out, probably about 15yrs ago.

It was orinally Sunlife then it was AXA and now it is Friends life.

With it swapping so many times i'm just wondering if there's maybe anything better that i should be investing this money in as i admit i know nothing about friends life?

I'm talking around £9000 in units and still buying at £25 a month.

Thanks

dunstonh

With it swapping so many times i'm just wondering if there's maybe anything better that i should be investing this money in as i admit i know nothing about friends life?

Friends Life is the combination of AXA Sun Life and Friends Provident. AXA sold their legacy book but wished to retain their brand for their main business areas in the UK. So, it needed a rebrand.

The fund you have would have been available in endowment, unwrapped and ISA form. Which is it that you have?

stulaunch

Hi dunstonh.

I've just checked and it was endownment. I took it out for 10 yrs then had choice to take money out or leave for another 10 yrs. The for every £100 i pay in, they buy £105 or units.

There is no death benefit now because value is far more value.

Thanks

dunstonh

The for every £100 i pay in, they buy £105 or units.

Dont read too much into that. It is probably to cancel out a 5% bid/offer spread.

Endowments have been obsolete since the early to mid 90s. Is there a surrender penalty (difference between current value and surrender value)? Are you a higher rate taxpayer? (rollover benefit is one positive of endowments for higher rate taxpayers)

stulaunch

I'm not a higher rate taxpayer.
They told me the value of policy ie the number of units at current price per unit. No tax to pay for surrender

stulaunch

Do you think its worth sticking it with then?