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Reproduced from:
Director Magazine - February 2007
"AFS appoints Paskell as President "
 The Association of Friendly Societies (AFS) has named Colin Paskell as its President to represent the trade association and the 53 Friendly Societies across the UK during the forthcoming year. Paskell, who is also Chief Executive of the Druids Sheffield Friendly Society, was elected at the Association's AGM and brings over 35 years of experience in Friendly Societies.
He will head an Executive Committee of 13 at the AFS in addition to five standing committees. In addition to being a member of the Policy and External Affairs sub-committee, Paskell has been involved in a number of working parties and steering groups to forward the interests of the friendly society movement and plans to continue that activity in his new role.
"Friendly Societies play an important part for the consumer in today's financial services market by providing access to products and savings plans that other organizations are simply not in a position to provide.
Take Child Trust Funds as just one example. At present, nearly half of all the Child Trust Funds in the UK are being provided by Friendly Societies. clear evidence of the role that AFS members have to play in financial inclusion in today's society.
"The AFS is evolving and my objective over the next year will be to support the movement and particularly the smaller societies in this development. It is a challenge that I fully intend to embrace. "Members of the AFS represent 9.8 million policyholders, 5.5m members with £16bn in assets with Royal Liver, Liverpool Victoria and Family Investments among the Association's largest members.
Andrew Townsley. Chief Executive of Sheffield Mutual was appointed Vice- President of the AFS.
A note from Colin Paskell and Andrew Townsley:
Friendly societies were originally formed by communities that would pay a regular sum, no matter how small, into a common fund that could be drawn on in times of need. Members felt a duty to assist their fellow fund members if they fell ill, or were unable to work. It resulted in an "industrious, working-class self-help movement," observes Professor Paul Palmer, professor of voluntary sector management at Cass Business School.
They celebrate their mutual status (there are no shareholders). Whether they're large, like Liverpool Victoria, which manages around £7.4bn of customers' money, or small, like Druids Sheffield Friendly Society, which only has two full-time employees, they all claim to have preserved the "friendly" principles of their benevolent founders.
The more successful ones have extended their shelflife through modernisation, acquisition or consolidation. The Child Trust Fund (a long-term savings account for children) is a good example, explains Colin Paskell, president of the Association of Friendly Societies (AFS) and chief executive of Druids Sheffield: "Friendlies have grasped the nettle and made the Child Trust Fund work for them. Forty seven per cent of the CTF market is run by friendly societies; it proves that we can adapt to modern products. We take members from all walks of life. As long as we adapt to new products, that's an advantage."
Reproduced from:
The Times - Saturday 24th June 2006
"Savings Watch"
With-profits policies have performed poorly over the years, but Anna Bowes, of AWD Case de Vere, the independent financial advisor, says: "With-profits policies offered by friendly societies have generally fared better."
Graham Berville, of the Association of Friendly Societies, says: "Returns can vary enormously. In the past few years there have been some star performers, such as the Druids Sheffield Society, which did well because of a large weighting in property."
Yorkshire Post - Saturday 22nd July 2006
"Check out the friendly societies"
Few savers realise the benefits of putting money aside regularly through a friendly society. Yet, carefully chosen, the schemes offered can be first class.
Instead far too many opt for bank and building society deposit accounts which cannot only pay derisory rates of interest but are taxable.
The core product of a friendly society is its 10-year tax-exempt savings scheme. On the plus side, there are four benefits:
• profits roll up gross with no tax liability, even for higher rate taxpayers;
• life assurance usually;
• encourages regular saving;
• share in mutuality (so that all profits are shared among members).
In a survey for the Yorkshire Post, the stars of the friendly society movement are all Yorkshire based. After 10 years of contributing £25 a month, Leeds based Kingston Unity returns a stunning 13.9 per cent per annum, Druids Sheffield 13 per cent and Sheffield Mutual 9.8 per cent.
Yet, at the other end of the scale, Royal Liver Assurance managed just 1.6 per cent.
Part of the secret in securing far higher returns is for societies to concentrate on property which is let at good rates of interest.
Druids Sheffield, established in 1858, may only have two full-time employees but they look after over £9m assets.
Colin Paskell, chief executive, has a background in property which helps when 62 per cent of the fund is in this field, 24 per cent in fixed interest, only eight per cent in equities and six per cent in cash.
The society is based at Wath upon Dearne, near Rotherham.
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