D
dChetty
Member
Hi
Under part (iii) in the solution.
Unit fund growth
The solution says the rate could vary according to the asset mix of each unit linked fund. Does this mean if the unit-linked fund is invested in equities, the unit-growth rate will be based on the return on equities and if it's a fixed-interest bond, the rate will be based on the return on the fixed-interest bond?
Annual management charge
The solution says the annual management charge could be based on the actual average charge for funds based on actual holdings at the valuation date.
Does this mean if the annual management charge on equities is 3% and the annual management charge on bonds is 2%, the average annual management charge would be 2.5%? Or are they talking about just the average across all equity funds or the average across all bond funds?
Please advise.
Under part (iii) in the solution.
Unit fund growth
The solution says the rate could vary according to the asset mix of each unit linked fund. Does this mean if the unit-linked fund is invested in equities, the unit-growth rate will be based on the return on equities and if it's a fixed-interest bond, the rate will be based on the return on the fixed-interest bond?
Annual management charge
The solution says the annual management charge could be based on the actual average charge for funds based on actual holdings at the valuation date.
Does this mean if the annual management charge on equities is 3% and the annual management charge on bonds is 2%, the average annual management charge would be 2.5%? Or are they talking about just the average across all equity funds or the average across all bond funds?
Please advise.