Prudential’s with-profits fund outperformed its competitors last year, returning 18.7 per cent.
LV= produced a return of 15.4 per cent followed by Legal & General with 14 per cent and Friends Provident with 9.3 per cent. Aviva returned 9 per cent and Standard Life returned between 7.3 per cent and 8.6 per cent, depending on asset mix.
Based on a 10-year bond with an investment of £10,000, LV= has the highest payout at £15,600 followed by Aviva at £14,956 for the ex-CGNU fund. Pru is to pay £14,346, L&G £12,121 and Friends £11,746.
On a 25-year mortgage endowment with a monthly payment of £50, LV= again pays the most at £51,254 with Aviva paying £36,979 for the ex-CGNU fund while Pru is set to pay £35,834 and L&G £34,486. Friends will pay £29,966 and Standard Life is to pay £28,139. On a 20-year pension with £200 paid monthly, LV= pays £112,105, Pru £93,538, Aviva £89,903. Standard Life £82,301, L&G £77,909 and Friends £77,314.
Hargreaves Lansdown pensions analyst Laith Khalaf says: “Many with-profits funds are now so conservatively invested that they will fail to enjoy good investment years like 2009.
“The main insurers have at least been decent enough to inform us how they are doing. There are billions of pounds tied up in closed funds from which we do not hear a peep. I doubt if this is because they are hiding their light under a bushel.”