Frequently Asked Questions

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You asked: What is a Market Value Reduction (MVR)?

Market value reductions (MVRs) are a way of ensuring that customers remaining in the With-Profit Fund are not disadvantaged when others leave. We only apply MVRs following a large or sustained fall in stock markets or when investment returns are below the level we would normally expect.

We constantly monitor investment conditions and the total amount of money being taken out of the fund. We may apply an MVR at any time if we think it's necessary to protect investors. This means that customers would see a reduction in their fund value and could get back less than they invested if they fully cash in or move out of the fund when an MVR is in place.

We'll always tell customers if an MVR is applying when they take money out of the fund, so they will have the opportunity to change their minds.

Depending on your plan an MVR may also be known as an ‘MVA' (Market Value Adjustment) or ‘MVAF' (Market Value Adjustment Factor).

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