A Market Value Reduction or MVR is designed to protect Members who are not taking their money out of the Society's With Profits fund and ensures that you receive your fair share.
MVRs are only applied in exceptional circumstances and could reduce the level of the payout that you would receive if you withdrew your money or surrendered your policy with the Society outside of your MVR free dates.
As of Monday, 22 March, the MVR that was in place on Kingston Unity With Profits Bonds and ISAs ha been removed.
We only apply a MVR if you surrender your investment outside of your MVR free dates or if you make a partial withdrawal above certain limits.
You can find your MVR free dates within your policy documents. If you can’t locate this, please contact the team who can help you further.
The recent MVR has now been removed. Therefore no deductions will take place as the result of an MVR.
No. A MVR is only applied to funds that are being withdrawn outside of MVR free dates or over and above the withdrawal limits allowed. MVRs are not permanent and can be introduced or withdrawn at any time.
A MVR free date is a date when any MVRs that are currently active will not apply to your policy. MVR free dates differ between policies:
We guarantee to pay out 101% of the initial investment, plus any bonuses, less any withdrawals already made, on the 10th anniversary of the investment or each subsequent 10th anniversary after that.
Please note that withdrawals must be made within 7 days of the initial anniversary and within 30 days of any subsequent anniversaries. Some older Investment Bond products may have slightly different MVR free terms. Please get in touch if you need more information about your specific Investment Bond.
On the 10th anniversary or each subsequent 5th anniversary after that, we guarantee you will be able to withdraw all the money paid into your ISA as well as all bonuses added, less withdrawals already made.
Markets rise and fall and the concept of With Profits is to weather market risks by investing in a range of different assets to ensure a smoothed return on the investment of all Members.
MVRs are designed to ensure fair returns to all Members during periods of extreme stock market volatility. They are not an indicator the Society is failing.
We believe our approach and experience in investing for the long-term will benefit those we serve as a mutual organisation. The With Profits fund has always been a diversified mix of assets managed with a cautious mindset, which despite heavy stock market falls, has acted robustly in these uncertain times.
No. A MVR does not affect any potential future returns from market performance.