New with-profits members face 9% charge - Skandia

The firm says market value reductions (MVRs) imposed by the biggest with-profits providers mean investors face an instant 9% loss unless they plan to stay in the plan until maturity. Skandia's research, which examined the average MVR of the six largest with-profits providers; Prudential, Norwich Union, Standard Life, Legal & General, Scottish Widows and Friends Provident, found new investors will immediately see their fund fall to 91p for every £1 they invest. The providers accounted for 62% of the UK's with-profits assets at the end of 2007, according to the FSA's figures, and Skandia sa...