Guaranteed Growth Fund MVA-Free Options
MVA-Free Options - Only applicable to Worldwide Premier Account and UK Premier Bond
A market value adjuster (MVA) may apply at any time during the investment term of a Guaranteed Growth Fund (GGF). However, at the end of the investment term an MVA will not apply.
There are a number of options available to you at the end of the GGF investment term. If you choose to leave your investment as it is, it will be automatically switched into the equivalent, or nearest equivalent, currency reserve fund and will remain invested in this fund until we receive instructions from you.
At the end of the GGF investment term there are four main options available. We recommend you read the following information carefully and discuss these options with your financial adviser before making a decision.
What are my options?
1. Remain invested in a Guaranteed Growth Fund
At the end of your current GGF investment term, if you wish to remain invested you can switch into series 7. This series has a minimum investment term of ten years.
2. Start taking MVA-free regular withdrawals
On the MVA-free date you can choose to take MVA-free regular withdrawals, up to a maximum of 10% of the original value of your Offshore With-Profits investment each year.
Regular withdrawals can be deducted on a monthly, quarterly, half-yearly, or yearly basis. The minimum that can be taken from the bond at any one time is currently £200 ($300 or €300).
If you are already taking regular withdrawals from the Guaranteed Growth Fund, and you choose to remain invested after the investment term, your withdrawals will continue unless you tell us otherwise. If you would like to increase or reduce your regular withdrawal amount please tell us on the regular withdrawal form.
If you cancel your existing regular withdrawals and wish to start them again at a later date, an MVA may apply.
3. Move your money into a new fund(s)
You can switch funds up to 12 times a year free of charge and select from a range to suit your attitude to risk. If you switch into a fund other than the Guaranteed Growth Fund series 7 or Offshore With-Profits, you will be able to take regular or one-off withdrawals, at any time, with no MVA.