Investors unclear over MVAs

With-profit bond investors are unclear about how much they will lose because of the varying market value adjusters (MVA) being applied, according to Patrick Connolly, associate director at Chartwell. Providers across the board have introduced MVAs on their with-profits bonds due to the downturn in the equity markets. Scottish Mutual, Norwich Union, Friends Provident, Legal & General have all reported a common MVA while Royal & Sun Alliance (R&SA), Scottish Equitable and Prudential have MVAs that vary on a case by case basis depending on when the policy was bought and how much money is in ...