Liverpool Victoria Mutual Investment Plan

Nick_C_4

No doubt you're right, however the FSA is now forcing them to reserve for all the guarantees they have dished out in safe bonds, so this shouldn't happen any more.

So maybe they don't recover as quickly because they're setting cash aside for the next set of guarantees paid out when the stock market's down. I'm afraid I don't actually know how they go about their smoothing and providing for guarantees. But if you want an investment that will immediately reflect a strong stockmarket then you don't want a with-profits fund!

cheggers

Could Liv Victoria ever convert to plc status?

We could all do with a windfall.

carnet

cheggers wrote:

Could Liv Victoria ever convert to plc status?

Bagged 'em (along with virtually every other mutual at the time ) about 5 years ago.

However, as they're a Friendly Society, am not holding my breath for their imminent DM.

bristolboy25

MVR's or MVA's are applied to protect the remaining investors in the WP fund, if everyone jumped ship at the same time the remaining investors would be left high and dry so they apply the MVA to stop this happening. I know this seems unrealistic but they have to cover themselves.

I work at an investment company and deal with these type of policies so know alot about them. Where I work I think that things are picking up and am starting to see alot of these heavy MVA's reducing so there seems to be some hope... it may be a good idea to hold tight for a bit.

Are you due any terminal bonus/final bonus upon surrender at all?

As previously mentioned you may have a date on the tenth anniversary upon which you can encash with no MVA. Also you may be due some loyalty bonus at this time too, maybe only a few percent but maybe worth something to you.

Anymore questions, please ask!

carnet

bristolboy25 wrote:

if everyone jumped ship at the same time the remaining investors would be left high and dry

If everyone jumped ship at the same time there would be no remaining investors .

Where I work I think that things are picking up and am starting to see alot of these heavy MVA's reducing so there seems to be some hope

MVRs/MVA's/UPA's (or whatever the Life Cos care to call them) have generally been falling for over the last two years.

Indeed, a SLAC WP Bond taken out in June 2002 has, since the nadir hit in the middle of 2003, been in a reducing negative UPA situation and has now, just in the past fortnight, gone into a positive bonus situation.

hansi

bristolboy25 wrote:

MVR's or MVA's are applied to protect the remaining investors in the WP fund, if everyone jumped ship at the same time the remaining investors would be left high and dry so they apply the MVA to stop this happening. I know this seems unrealistic but they have to cover themselves.

I work at an investment company and deal with these type of policies so know alot about them. Where I work I think that things are picking up and am starting to see alot of these heavy MVA's reducing so there seems to be some hope... it may be a good idea to hold tight for a bit.

Are you due any terminal bonus/final bonus upon surrender at all?

As previously mentioned you may have a date on the tenth anniversary upon which you can encash with no MVA. Also you may be due some loyalty bonus at this time too, maybe only a few percent but maybe worth something to you.

Anymore questions, please ask!

I know that there is no MVA free date on this policy. I have that in writing from them. However, what I will do is ring them and find out what the current MVA is and if it's still too high, I'll ask if I can withdraw 7.5% annually as per their T&C's and apply it retrospectively over the last six years. 7.5% of £5k x 6 years = £2250 and leave the rest there.

hansi

I just checked the current MVA and it stands at 15.5% today which would mean I would lose about £900 which is not on. Also I can't take the 7.5% retrospectively either. They've got you all ways haven't they?

hansi

With all the recent publicity about MVA's, I sent an email to the BBC Working Lunch team about the current MVA's imposed by LV and they telephoned me today and have invited to take part in an interview to be screened in the first week of the New Year.

hansi

Does anyone know how long LV have been imposing MVA's on their WP policies?

bilbo_2

three years now at least according to there telephone sales staff

i too have one of these damn mutual investment bonds and every time i ring they say the mvr is still in place !! I think they would say that if it had been lifted

my five years is up (september 2000) and i thought after 5 years i would be able to withdraw

they sure have us lot stitched up good and proper

would be grateful if you could keep me informed on any change Hansi

thanks and good luck