policyholders in with-profits bonds could lose out if other investors encash their policies
Policyholders remaining in with-profit bonds stand to lose out if other investors take advantage of special policy clauses that allow them to encash their policies without a market value reduction (MVR) penalty. Some with-profit bonds have a clause in their policy conditions that allows policyholders to exit their investment without the usual penalties on specified dates. However this may leave remaining investors holding policies with later MVR-free dates out of pocket, the very outcome groups had sought to avoid by applying MVRs in the first place. Simon Farrant, product research ma...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes