Market Value Adjustment: Secured Performance Fund, Capital Protection Fund

Current Market Value Adjustments (MVA)

  • With effect from 4 December 2023, the Market Value Adjustment (MVA) for the Pension Capital Protected Fund is 0% of the published price.
  • With effect from 12 April 2023, the Market Value Adjustment (MVA) for the Capital Protection Fund is 0% of the published price.
  • With effect from 23 December 2013, the Market Value Adjustment (MVA) for the Secured Performance Fund is 0% of the published price.

For the latest fund factsheets please click here.

A Market Value Adjustment (MVA) is a negative adjustment that life companies reserve the right to apply to certain withdrawals or switches from certain funds, and it is normally applied when extreme investment conditions have adversely affected investment performance. This adjustment is necessary in order to protect the interests of those long-term investors who remain in the fund.

Where clients switch their assets out of the Capital Protection Fund or the Secured Performance Fund or the Pension Capital Protected Fund Irish Life may apply a Market Value Adjustment (MVA), thereby reducing the amount available. The Market Value Adjustment (MVA) effectively reduces the amount available to transfer.

When does an MVA apply?

The following sets out where a Market Value Adjustment (MVA) will apply on the exit from the funds.

  • Where an individual member elects to switch money out of the Capital Protection Fund or the Secured Performance Fund or the Pension Capital Protected Fund to another fund.
  • Where an individual member transfers out of the Capital Protection Fund or the Secured Performance Fund or the Pension Capital Protected Fund without having left the service of the employer.
  • Where an active scheme transfers or switches money out of the Capital Protection Fund or the Secured Performance Fund or the Pension Capital Protected Fund to another fund or to an external body.
  • Where an individual member transfers out of the Capital Protection Fund or the Secured Performance Fund or the Pension Capital Protected Fund more than nine months after having left the service of the employer (but not on death or retirement).

When does an MVA not apply?

The following sets out where a Market Value Adjustment (MVA) will not apply on the exit from the funds.

  • Where a claim is payable upon death of a member.
  • Where an individual member draws down retirement benefits from the Capital Protection Fund or the Secured Performance on early, normal or late or ill health retirements.
  • Where an individual member transfers out of the Capital Protection Fund or the Secured Performance Fund or the Pension Capital Protected Fund within nine months after having left the service of the employer.

Transfers to Personal Retirement Bonds (PRBs) within Irish Life Corporate Business can be used to maintain investment in the Capital Protection Fund or the Secured Performance Fund and will not incur a Market Value Adjustment (MVA) on transfer. Once in the PRB the Market Value Adjustment (MVA) will then apply as outlined above.