Shortfall on Lincoln 10yr Maximum Investment Plan

jane271

This is my first post so please be gentle

10 years ago I took out a MIP from Lincoln, £50/month with Life benefit. I know that is was not fixed and you may not recieve back what you pay in but.....

It matured this month, I had a statement of the 6th Oct stating the plan had a value of £6800, I recieved a seperate letter explaining that I would be paid on the 26th of Oct and the money would be with me within 3-5 wrking days, and it was estimated the fund would be worth £6800. Only £800 more than I paid in but I know it was guaranteed.

The money did not arrive with 5 working days of the 26th (which I know was a Sunday), I phoned and they said sorry payment made late and it was not paid until the 30th Oct (I logged a complaint immediately and have asked for a a written response), I then enquired as to how much was paid and was told £4800.

Does anyone know if I have any grounds for complaint about the shortfall, ie no warning at all that within 20 days I would loose around £2000 and get back less that what I paid in. I have asked for a complete breakdown of the final 6 months performance.

thanks
Jane

turbobob

What was the name of the fund it was in?

jane271

It was in four funds overall:
UK equity income
UK equity inc cap
UK equ grwth life
UK eqty gr lf cap

thanks
Jane

turbobob

Hi, not sure on the "cap" ones but here is a UK Equity Income fund and a UK Equity Growth fund. Might it be these?

Unfortunately, with both funds being totally invested in shares, they will have taken the full brunt of the current problems on the stock markets. Having said that a 30% drop between the 6th and 26th October does sound quite severe. Was the valuation date on the 6th October statement definitely that day? I could well believe 30% down from some time in September though.

jane271

Thankyou

the statement says: your investment as at 6 October 2008, so yes 30% loss from 6th to the 26th...I was a bit shocked, didn't expect to make much but hoped to at least get back what I put in.

Jane

baby_boomer

The market bottomed in the morning of Monday 27th October, so your timing could have hit exactly rock bottom if your funds were liquidated at that time. If your funds were liquidated early on on Friday 24th October then you it was only 2-3% up on the worst position on Monday.

It has subsequently risen by around 18%, unfortunately for you.

I would write to the company asking when your funds were actually sold.

Click here is a FTSE100 chart for the last 5 days

And click here for another chart for the last 3 months

to give you something to go on.