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This page relates to the National Mutual With Profit Fund

The National Mutual With Profit Fund was established on 31st December 2007 by the scheme that transferred the with profits business from NM Pensions Limited (TomorrowTM) to Windsor Life Assurance Company Limited. It primarily contains the business originally written by National Mutual Life Assurance Society which was held in the National Mutual Fund.

Market Value Reductions for With-Profits Policies

In some circumstances, an adjustment may be applied to claims, which reduces the claim value to below that which would be payable on an equivalent maturity. Such an adjustment is known as a Market Value Reduction (MVR). It may result in the claim value falling below the level of the guaranteed benefits (recalculated to the date of claim). The policy proceeds to which an MVR would be applied include most surrender and transfer values (including internal transfers and partial encashments), early and late retirements (where permitted under the terms of the policy document) and (for unitised policies) fund switches out of with profits.

The Company applies MVRs in order to protect the interests of continuing policyholders in the fund. The Company will normally consider applying an MVR when final bonus rates overstate the true value of the policy. The rate of any MVR applying from time to time may be varied frequently by the Company.

You can find more information about how MVRs are applied to policies in the National Mutual With-Profit Fund in our Principles and Practices of Financial Management (PPFM) Document which is available by clicking here.

It is most likely that we'll need to apply an MVR following a large or sustained fall in stock markets. The MVR is set so as to adjust the value of your policy to an amount that is fair taking into account the market value of your share of the investments in the with-profit funds at that time. An MVR may apply if you chose to move your investment out of our with-profit funds. A tick in the table below shows the circumstances when an MVR may be applied:

Circumstance Generic Product Type
Pension Drawdown Endowments & Investment Bonds Whole of Life
Assignment of a life policy.      
Maturity of a life policy.    
Full surrender of a life policy. Yes - an MVR may apply Yes - an MVR may apply
Partial surrender of a life policy. Yes - an MVR may apply Yes - an MVR may apply
Regular withdrawals, where initiated at outset.    
Death of policyholder.        
Fund switching out of Unitised-With-Profits fund into an alternative investment fund. Yes - an MVR may apply Yes - an MVR may apply  
Taking retirement benefits at originally selected retirement date.    
Taking retirement benefits before originally selected retirement date. Yes - an MVR may apply
Pension Transfer to another company (except transfer made under the Open Market Option at originally selected retirement date). Yes - an MVR may apply Yes - an MVR may apply
Taking retirement benefits after originally selected retirement date. Yes - an MVR may apply  
Exceptional drawdown   Yes - an MVR may apply
Drawdown - buying an annuity before age 75 Yes - an MVR may apply

MVRs may be applied from time to time and you should check before you surrender or transfer a policy. If you need further information on your Plan call us on 0800 073 1777. If you are calling from outside the UK, please call 00-44-1952-292929. Please have your policy number to hand.

The table below details the Market Value Reductions in the National Mutual With Profit Fund that may be applied.

Product Market Value Reduction
(% of fund) 		Date applied from
Pension Policies Nil 12 August 2009
Life Policies Nil 12 August 2009

Past performance is not a guide to the future. The value of an investment may fluctuate and is therefore not guaranteed. For current Bonus Rate information, please click here.

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