It does, Gringe, thank you very much for that.

Sorry, a typing error, I meant MVA ( Market Value Adjuster). This is a percentage, variable year on year which would be removed from the bond value should you cash it in and has been used as a deterant to prevent investors from doing so. Over the years the MVA has exceeded 20% which meant you would lose money in the early years and last year it was 12%, so not so clever. At this moment in time the MVA is 6% and may be removed this year.

The current bonus (interest) PA is 2.5% and when compared to a normal B Soc 1 year bond at 6%, again not very clever

I understand that AXA are reviewing both MVA and profit percentage, the results to be made available next month so watch this space.

In conclusion, this product was sold on "you can't lose basis" and many people have lost because they had to cash in.

Hope this makes sense

Gringe

Can you explain what MVR is for those of us that don't know, please? I'd be interested in joining the discussion but am not familiar with the acronym. Thanks

29% return net of charges in 7 years and enduring a steep downturn in the market? What were your expectations exactly Gringe?

What MVR applies?

In 1999, aged 65, my wife and I were advised to invest £30000 in a bond. As we know the market crashed and so did the return on product in question. As of 2006 the value was only £38700. With the very poor return and the MVR applied this must be the worst investment we have ever made and it seems the only way we will ever see the whole sum is when one of us dies. Now we have reached a point where we need the money we feel we are between a rock and a hard place, what can we do?
Also how much longer will the MVR apply?
Thanks in anticipation,
Gringe.