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  • Actual for You - Buying Insurance Bonds - Managed Funds

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    The application of an MVA is a rare event but to avoid it happening to you, it is wise to ensure that you can be flexible in the timing of your withdrawal so that you can defer it until the MV

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    Managed funds

    Investments are in a mixture of the life company's funds. Because of this, performance is less volatile than other types of funds.

    You are in effect using the expertise of the life Company's managers to choose a mixture which achieves good returns at lower risk.

    Some funds set off charges against annual bonuses, others do not, so it is necessary to take this into account when comparing. Some providers also charge by investing less than 100% of the amount put in; this is called the allocation rate.

    Advisers get a commission - try for a rebate.

    Market value adjustment

    Most managed funds with an equity involvement carry a provision for a market value adjustment (MVA) in case the underlying assets of the fund are severely depressed at the time of an individual withdrawal due to a considerable fall in the stock market. This is in order to protect the interests of the remaining investors.

    The application of an MVA is a rare event but to avoid it happening to you, it is wise to ensure that you can be flexible in the timing of your withdrawal so that you can defer it until the MVA

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    s to choose a mixture which achieves good returns at lower risk.

    Some funds set off charges against annual bonuses, others do not, so it is necessary to take this into account when comparing. Some providers also charge by investing less than 100% of the amount put in; this is called the allocation rate.

    Advisers get a commission - try for a rebate.

    Market value adjustment

    Most managed funds with an equity involvement carry a provision for a market value adjustment (MVA) in case the underlying assets of the fund are severely depressed at the time of an individual withdrawal due to a considerable fall in the stock market. This is in order to protect the interests of the remaining investors.

    The application of an MVA is a rare event but to avoid it happening to you, it is wise to ensure that you can be flexible in the timing of your withdrawal so that you can defer it until the MV

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    sting less than 100% of the amount put in; this is called the allocation rate.

    Advisers get a commission - try for a rebate.

    Market value adjustment

    Most managed funds with an equity involvement carry a provision for a market value adjustment (MVA) in case the underlying assets of the fund are severely depressed at the time of an individual withdrawal due to a considerable fall in the stock market. This is in order to protect the interests of the remaining investors.

    The application of an MVA is a rare event but to avoid it happening to you, it is wise to ensure that you can be flexible in the timing of your withdrawal so that you can defer it until the MV

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    ision for a market value adjustment (MVA) in case the underlying assets of the fund are severely depressed at the time of an individual withdrawal due to a considerable fall in the stock market. This is in order to protect the interests of the remaining investors.

    The application of an MVA is a rare event but to avoid it happening to you, it is wise to ensure that you can be flexible in the timing of your withdrawal so that you can defer it until the MV

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    ests of the remaining investors.

    The application of an MVA is a rare event but to avoid it happening to you, it is wise to ensure that you can be flexible in the timing of your withdrawal so that you can defer it until the MVA is removed.

    With profits bonds

    These are a more conservative form of managed fund. The difference is that the value of the fund is unlikely to fall because annual bonuses (also called reversionary bonuses) are declared but some growth is retained to smooth out returns and pay for terminal bonuses (payable on terminating the investment).

    With profits bonds have become a very popular form of investment, particularly with retired people, probably because of their steadiness in growth, despite the disadvantage of not knowing in advance what the terminal bonus will be. On the negative side, in recent years there has been a downward trend in bonus rates.

    Investment bonds

    These are similar to with profits bonds except that they are unit linked, so there is no smoothing. This makes them more volatile.

    As for with profits bonds, the income is normally left in, as the obje

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