In the past this sort of "good news" has been announced with a fanfare. For example last time they reduced their MVR rates they issued this press release with a full list of rates depending on different dates of investment: http://www.aviva.com/media/news/5487/.
This time around, there's no announcement and there's no details on the website of what these reductions are or on what day in May they came into force. I've written this blog simply because I'm puzzled by the silence and lack of information. I spotted the website change Monday morning and I've waited to see if an announcement will follow but this looks like the second day of tumbleweed.
One of the great criticisms of with-profits is the lack of transparency. In the absence of clear information it's inevitable that people will speculate with conspiracy theories. And to get you started here are just a few potential theories that might explain the silence:
Conspiracy Theory 1/ The reductions are so small that everyone will criticise and give up hope of a recovery.
Conspiracy Theory 2/ The reductions are so large that everyone wonders why and questions whether it's a ploy to reduce the No-MVR carry-forward promise that they've made on Aviva (ex CGU) With Profits Bonds reaching their 10th anniversary.
Conspiracy Theory 3/ They're unsure how to communicate and justify the 4.8% MVR rate applying on the three Special Bonuses they made in January 2008, January 2009 and January 2010.
Conspiracy Theory 4/ The decision to improve rates were made when the FTSE looked steady at 5,700 but now that it is 7% lower at 5,300 the pressure's back on for a quick change back again.
Conspiracy Theory 5/ Improvements in MVRs typically signal an opportunity for people to consider divesting and they don't want people to know.
Of course the most obvious explanation is that they've not got around to it just yet. Let's hope we hear some news in the next couple of days.
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