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AVIVA's MVR ate my profit
Comments
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An interesting thread. Which I am now a bit fed up with.
I have an Aviva WP policy which interestingly is showing a small terminal bonus (implying it's doing well?) AND an MVR.
As many have said these policies are a thing of the past. If you have a 10 year Guarantee then get out at that point OR make a complaint to the IFA if you feel you have been misled.0 -
Other booklet referred to possible MVR in case of 'large and sustained fall in the stock market' or 'after a period where investment returns are regularly below the level we normally expect'.
For most of the last 3 years the FTSE100 has been showing a loss compared to 2006.
This is clearly below the sort of return you would expect over a 5 year period.
I'd suggest this sort of example justifies an MVR (acknowledging Dunstonh's breakdown of the fund being different to the FTSE100).
Stranger things have happened, but I'll be amazed if the FOS rule against Aviva in this case. It's either inappropriate recommendation by IFA or client using the fund in a different way to the recommendation.0 -
You haven't seen the lovely graph in the booklet sent by AVIVA to show how well the fund has done. It's nearly off the chart and way above the FTSE.
It has beaten the FTSE in most recent 5 year periods.Time to cash in these bonds asap lest there is a double dip and the MVR will be astronomical.
There have been eight financial crisis since 1956. Thats an average of every 7 years. There are recessions every decade. Investment don't necessarily go bad because of a recession. It depends on how far advanced the expectation is prior to that. Currently investments are generally lower valued compared to what they were prior to the credit crunch and recession. Especially in real terms.
A double dip would actually see you better off sticking with this Aviva fund until the 10 year MVR free exit point which you probably have (i have found flyers from around 2003-5 that said they had a 5 year and 10 year MVR free exit point but I do recall Aviva pulling the 5 year MVR free point and going only with 10 year after that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I don't even recall the MVR being pointed out to me but it's in the book.
Quite so - most complainants do not recall being told but that is not the same as saying they weren't£2000 was a shock (last year). £900 is a shock this year.
I have just received a copy of an Ombudsman's decision (as opposed to an adjudicator's) in which he sympathised that a complainant had experienced a "shock". He still rejected the complaint, though, as the evidence indicated that the complainant had been aware of the possibility.The blurb does not state that MVR will be applied, just that it might. It's nice and vague.
In that particular case, the Ombudsman also made specific comment that the size of the financial effect was not something that could have been reasonably foreseen.0 -
So someone present to you with a minor complaint: and your saying you "know" what the outcome will be?0
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Ilya_Ilyich wrote: »You keep saying this. What is it about "the stock market hasn't grown in 5 years" that makes you think this specific WP policy should have grown significantly in value?
ehhhhmmmmm well how about the dividends over the last five years? or how about all that alpha return fund managers talk about?
it's strange how i've never met anyone that got rich through the advice of an IFA.0 -
it's strange how i've never met anyone that got rich through the advice of an IFA.
You obviously dont get out! Although, its not exactly a topic of conversation you have with people.
I am sure that any family that has suffered a death/illness where the IFA set up the life cover that perhaps the person didnt really want will be very happy with the IFA. Or the people that were persuaded to put proper money towards their retirement provision and not the minimum premium that DIY allows will be happy with the result.
This mistaken belief that IFAs have crystal balls to predict events is just silly. All it shows is that you dont know what an IFA does.
Despite my thoughts that £15k in an investment bond is a strange decision, the OP has made more money than a FTSE tracker. Given the fact that EllenGB would have lost around 43% of her investment had she gone FTSE tracker during that 5 year period, could you imagine the comments then if you only base it on what has been said on this thread so far? If you want guarantees/protections you WILL NOT get the positive returns of the same level as non guaranteed investments.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I'm bored with this thread too, so let's leave it here, folks.
This is not a boring thread. In fact it is quite interesting. I have read it from start to finish.
What we have is an OP who basically doesn't understand the concept of a MVR - these days an essential part of WP contracts. This despite the most helpful explanations (and links) that explain exactly how these work and why they are technically necessary.
We have an investment that has performed over a specific period in a way that most people would drool over, and yet is unhappy. The concept of comparing a 5-year WP fund performance with a 3-year FTSE performance simply beggars belief.
It certainly deserves an award nomination for several categories, not least the changing 'position' regarding the Ombudsman and whether they are not interested, or think it's ridiculous, or will not take it up, or have definitely chosen to take it up....
I am just guessing, but I imagine the IFA involved is probably the one deserving the award. He has probably explained it 'to death' and yet had an ear-bending to end all ear-bendings - and is probably thinking of emigrating.0 -
I hope that you won't mind your GP being nice and vague about any intervention and then the shock of a major adverse reaction can be put down to something that could have been reasonably foreseen. Just cause he/she told you that there was a possibility of complications. and if you come to me and say that you weren't told, I'll tell you that you probably just don't remember.
I think, then, it is my good fortune that my GP is called Susie, not Ellen. I have confidence in her abilities and understand, and accept, her limitations.it's strange how i've never met anyone that got rich through the advice of an IFA.
DunstonH is right - unless all your circle are of the Harry Enfield "Loadsamoney" type it seems unlikely they would tell you.0
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