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This page relates to the Windsor Life With Profit Fund

Market Value Reductions for With-Profits Policies

In some circumstances, an adjustment may be applied to claims on Unitised With Profits (UWP) policies, which reduces the claim value to below the nominal value of attaching with-profits units. Such an adjustment is known as a Market Value Reduction (MVR). An MVR will not be applied on maturity, death or regular withdrawal initiated at outset.

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 the market value of the assets backing UWP policies is below the nominal unit value. 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 UWP policies in the Windsor Life 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 Investment Bond Endowment 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 Yes - an MVR may apply
Partial surrender of a life policy. Yes - an MVR may apply 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 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
Taking retirement benefits after originally selected retirement date.  

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 our Market Value Reductions in the Windsor Life With Profit Fund that may be applied.

Product Market Value Reduction
(% of fund) 		Date applied from
Preserve & Profit- Series 1 Nil -
Preserve & Profit- Series 2 Nil -
Preserve & Profit- Series 3 Nil -
Preserve & Profit- Series 4 Nil -
Preserve & Profit- Series 5 Nil 22 March 2010
Preserve & Profit- Series 6 Nil 22 March 2010
Preserve & Profit- Series 7 Nil -
Preserve & Profit- Series 8 Nil -
Preserve & Profit- Series 9 Nil 28 June 2010
Preserve & Profit Series 10 Nil -
Individually Funded Pension Schemes with a participating year of 1992 and later Nil 22 March 2010
Aegon Pensions (regular premiums) Nil 10 September 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 for the Windsor Life With Profit Fund, please click here.

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