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You asked: Can you give me an example to show why MVRs are applied?

If there are three investors in the With-Profit Fund, who each invest £10,000, the total fund is worth £30,000. If stock markets fall by 20% and the total fund value drops to £24,000, it would mean that if one investor withdraws their original £10,000 without a market value reduction in place, it would leave only £14,000 to be shared between the remaining two investors. Market value reductions are a way of ensuring that customers remaining in the fund are not disadvantaged when others leave.

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