Shepherd Friendly S&S ISA - Is it worth it with the cashback?

masonic

P3 said:

Hence this is a terrible unfair product. Hey, why else would they offer such high cashback...... it is to lure people in.

We can agree they are terrible products, and the cashback is just the return of some of the high charges taken, but the only people who will feel treated unfairly are those who invested carelessly and didn't understanding what they were investing in. Equally, those who invested on the basis of internet advertising could have ended up in LCF mini-bonds (or some other scam) as a result of their carelessness, so should really count themselves fortunate and learn a lesson from this experience.

P3 said:

I could be wrong but I believe this 10% is across the board for everybody.
I enquired this last month without telling them my policy number so they have no idea how much and when I invested in, and quoted 10% just the above poster.

The MVR reflects the current value of the investments, so yes, all investors are being treated to a fair share of the assets. It is up to each investor whether they wish to sell their share of the assets while they are worth less, or continue to hold the product until the assets appreciate in value and the MVR is lifted.

I don't think dunstonh's comments contratict that, if the MVR is calculated on the basis of the accumulated value of the product, then the MVR as a proportion of their contributions will vary between individuals.

I'd agree with you that there is no reason not to be more transparent about the MVR and impact on investors should they choose to cash in their policy, but there is no transparency as to the investments held in the product, so this is not a product anyone wishing for transparency would ever be satisfied with.

Albermarle

Plus the market has returned back to its peak from the covid drop-down, I can't see why the discount rate still in place

The problem is that the fund involved is an old fashioned investment that has performed badly .

Thrugelmir

P3 said:

Plus the market has returned back to its peak from the covid drop-down, I can't see why the discount rate still in place

Which market? Investments come in many forms. 

Alexland

Albermarle said:

The problem is that the fund involved is an old fashioned investment that has performed badly .

The problem is broader as new investors are suffering the same MVR as people who were invested before the crash.