Abbey cuts with-profits MVRs

Details of Abbey’s with profits announcement this morning reveals some policies will receive increased terminal bonuses while others will still fall in comparison to last year, as the bulk of investment gains were made in Q2 2004. Following a review of Abbey’s with-profits funds last July, the Scottish Provident UK fund grew 10.5% over 12 months and 7.6% since July 2004 while the Abbey National Life and Scottish Mutual funds earned growth of 9.5% in the last year, thanks largely to 8% growth since July. MVRs have also fallen by at least 6% but only policies with guaranteed bonuses wil...