Aviva pledges to cover with-profits guarantee impact

The guarantee allows consumers to invest in the fund while giving them the chance to get back at least their full initial investment after five years, even if there is a market value reduction (MVR) on the fund. New investors will pay an additional 0.7% charge for the guaranteed option, which is due to launch on 30 November, while MVRs will be capped at the initial investment value. However, advisers are concerned the guaranteed option could undermine the purpose of MVRs, which are supposed to ensure investors who remain in the fund are not disadvantaged by those who choose to divest ...