Widows reduces mvr after fund boost
Scottish Widows has halved its MVR to 5 per cent and average surrender values have risen by 10 per cent after good with-profits performance.
Widows’ with-profits fund posted growth of 10.4 per cent in 2004. Regular bonus rates on the flexible options bond growth fund remain at 5 per cent and for the income version range between 3.5-4.5 per cent, a fall from 4-4.75 per cent last year. Final bonuses for unitised with-profits life and pension policies remain broadly unchanged at 1 per cent.
Equity exposure on Widows’ with-profits fund has been raised from 38 per cent to 47 per cent and fixed-interest holdings cut from 41 to 36 per cent.
Actuarial director Adrian Eastwood says: “By consistently pursuing a prudent approach to bonuses, we have avoided any undue restriction on our investment freedom.”
