Investors in the LV= with-profits fund will see their policy values fall by an average of 1.2%.
The firm says its fund has performed well in a turbulent investment market, but will be cutting annual bonus rates by as much as 1.4%. Over the past five years, the with-profits fund has made a cumulative investment return of 29%, while average annualised returns were 5.23%. LV= expects to add around £84.5m in bonuses to policies, but confirmed it will cut annual bonus rates on with-profits products, in line with other providers. Customers using a With-Profits Pension Annuity Series 3, purchased in 2007, will see annual bonuses cut from 2.8% in 2007to just 1.4% over 2008, the biggest si...
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