Abbey sees improved performance of with-profit funds

23 March 2005
Abbey's with-profits funds witnessed a stronger performance in the second half of 2004, bringing good news for many policyholders.

The building society was able to improve conditions for many of those holding with-profit funds, reducing Market Value Reductions (MVRs) on early surrender, and increasing or re-introducing terminal bonuses for some maturities.

In the second half of 2004, Scottish Provident UK saw 10.5 per cent growth over 12 months and 7.6 per cent growth since July 2004, whilst Abbey National Life and Scottish Mutual saw 9.5 per cent growth over 12 months and 8.0 per cent growth since July 2004.

The MVRs on all three with-profits funds have improved by at least six per cent since completion of the fund review in July 2004, Abbey claims.

This is in keeping with the building society's July 2004 announcement that it would place a priority on improving MVRs for its with-profits funds before re-introducing annual bonuses.

Click here for more information about investments.
track© DeHavilland Information Services plc