Pension Performance Account for company pensions - Irish Life

Section 4
Funds and unit prices
This section explains how the investment funds work.
4.1 Introduction
This policy is unit-linked. Unit-linking is simply a way of working out the
value of your policy on any date. You do not own the units. The policy will be
linked to units in one or more of the funds in the panel of funds as defined in
section 1. There are a maximum number of funds that the policy may be linked
to at any one time. This maximum is currently (July 2008) five.
The accumulated fund will remain invested in the fund you have choosen until
you decide to take retirement benefits, reach your nominated retirement age or
until you die.
4.2 Working out unit prices
We work out the offer ( buying ) and bid ( selling ) price of units in all of the
funds by using the market value of the assets of the fund and taking off the
management charge. These may go down as well as up. The bid price cannot be
lower than 95% of the offer price. We place units in funds at the offer price.
We cancel them at the bid price. The 5% difference between the offer and bid
prices is a charge.
The Exempt Guaranteed Fund and the Secured Performance Fund guarantee
that the prices of the units of the fund will never fall. There are restrictions
placed on units in the Secured Performance Fund and the Exempt Guaranteed
Fund. There are circumstances where this price guarantee will not apply.
We describe these funds in more detail later on.
You will find exact details of how we calculate fund prices in the resolutions
and rules governing the funds. You can ask us for a copy of these from our
chief office.
4.3 Fund charges
Regular Premium Fund Charges
We make certain charges on the regular premium funds and our current charges
are summarised for each fund in the following table.
Panel of funds
Fund management
charge each year
Consensus Fund 1.65%
Exempt Active Fund 1.75%
Exempt Cash Fund 1.75%
Exempt Guaranteed Fund 2.00%
Exempt Property Fund 1.75%
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