Investors lose on with-profits MVRs

Over a million investors are expected to lose 20% or more off the value of their with-profits bon...

Over a million investors are expected to lose 20% or more off the value of their with-profits bonds, according to Metlife. A number of leading insurers have introduced market value reductions (MVRs) which are used to ensure early policy withdrawals made before the full term reflect the fall in the over price of the life fund. These charges have continued to be levied against investors even when the FTSE 100 was hitting its most recent peak of 6,500, says Metlife. The company argues investors would benefit more from investing in an investment bond, where MVRs are not applied. Peter C...