Barry Sears's Blog (1)

Many people have invested in with-profits funds over the years. When markets are down, with-profits fund managers often exercise something called a Market value reduction (MVR). This is essentially a penalty

for those withdrawing money from the fund. The purpose of an MVR is to reflect the underlying fall in values and to protect those who remain invested in the fund.

At times like this it is often best to sit tight until the markets recover and the MVR is withdrawn. However,…