12th April 2012: Market Value Adjustment to the Secured Performance Fund and the Capital Protection Fund

The falls in the values of the underlying assets of the Secured Performance Fund or the Capital Protection Fund, in addition to poor investment returns, mean that it is necessary to apply a Market Value Adjustment to switches out of the funds. This reduction does not apply to transfers to other arrangements which occur within nine months of leaving employment or on retirement or death.

Current Market Value Adjustments

• With effect from 12th April 2012 the MVA for the Secured Performance Fund is 16% of the published price.
• With effect from 17th September 2009 the MVA for the Capital Protection Fund remains at 0%.

For the latest fund factsheets please click here.

A Market Value Adjustment (or MVA) is a negative adjustment that life companies reserve the right to apply to certain withdrawals or switches from certain funds, and it is normally applied when extreme investment conditions have adversely affected investment performance. This adjustment is necessary in order to protect the interests of those long-term investors who remain in the fund.

It is important to remember that all normal demographic individual member entries and exits from the fund will remain at the prevailing published price. These include retirement, death in service, changing jobs, early retirement, retirement due to ill health and redundancy. This reduction does not apply to transfers to other arrangements which occur within nine months of leaving employment. Non-demographic withdrawals, such as fund switches, will receive the prevailing published price reduced by the market value adjustment.

The Market Value Adjustment will be reviewed regularly. The level of the adjustment will depend on the investment market conditions prevalent at that time.

If you have any queries, please contact your Account Manager.