Hi The exam report says "Unit linked assets and unit liabilities are unaffected" by an increase in interest rates in the base position. a - Is this only true for this particular question because it says "unit-linked liabilities are invested in a mixture of equities and property"? b - If the question hadn't said unit funds only have equities and property, would it have been correct for the answer to say unit-linked assets and liabilities would decrease in base due to lower market value of fixed interest assets held in unit funds, and this would decrease charges less expenses going forwards, with a positive impact on non-unit BEL - ie higher absolute value of negative BEL - and lower own funds?
