Investments, Single Premium Contract with Funds

 

Start the policy as described in “Investments, Starting Policies, Contracts and Accounts”

 

At the bottom of the first screen, as shown below, after entering the “Policy start” and “Until” details…

  • Enter the initial premium (e.g. £5,000) and use the “…per” drop-down to select “Single”
  • Set the “Investment” drop-down to anything other than “None” (e.g. “Unit Linked”)
  • Click the black “Curve-right Arrow” key or press the “PgDn” key to move onto the next “Transactions” screen

 

 

On the “Transactions” or “Funds” screen, as shown below…

  • Click the “Add” button in the middle of the screen

 

 

 

On the “Add Fund for…” pop-up, shown below…

  • Click the “>” button to the right of the “Fund code”

 

 

You should come to a “Locate Fund” dialogue (see below)

  • Use the “Type” drop-down to select the fund type (e.g. Insurance fund for a Bond)
  • In the “Fund name” enter the beginning of the fund’s name (e.g. “Axa”) then click the “Binoculars” button
  • If you don’t find the fund you want, click the “Next” and “Previous” buttons till you do
  • Click “OK”

 

 

You’ll return to the “Add Fund for…” pop-up, shown below, where you should complete the “Original” column as follows…

  • Enter the “Sum £” to be invested in the first fund (e.g. half of the £5,000, so £2,500)
  • Enter either the “Units” or the “Unit price” (n.b. but not both)
  • Click the “=” button next to the “Sum £” and the system will calculate the “Units” or “Unit price” (i.e. whichever was blank)
  • Enter the “Date” of the investment

 

Now in the “Current” column…

  • Enter the date of the current valuation
  • Click the “>” button next to “Copy Units”
  • Enter the current “Unit price”
  • Click the “=” button next to the “Sum £” and the system will calculate the current value
  • Ignore the “Split %” figure. It will correct itself as the funds are added
  • Click “OK”

 

 

Once you’ve completed the first fund selection you’ll be returned to the “Edit Event” pop-up (n.b. the “Event” in this case is an “Initial purchase” for £5000 split equally between two funds). If the investment has multiple funds click the “Add” button and repeat the above process for each one, as shown below…

 

 

Click “OK” when you’ve finished adding funds on the “Edit Event” pop-up, above, after which  you should agree to the prompt to “Recalculate totals”…

 

 

…and then you’ll be returned to the “Transactions” screen, shown below…

 

 

Finding The Correct Fund Name

One of the biggest problems with this process is knowing the fund name, which only comes with experience. For example a “Clerical Medical” fund might be called exactly that, or perhaps “Cler Med” or “Fidelity Cler Med”, etc. Sometimes an insurer might use a totally different fund manager, like the “Edinburgh Fund Managers”. If in doubt refer to the financial adviser who sold the product or the provider of your data-feed for investment fund prices (e.g. Financial Express).

 

Initial Accumulations (or Extra Units)

Sometimes an investment is allocated extra units (e.g. to represent 105% or 110% of the initial premium). Do not enter these in the “Original” column. Instead you should enter these in the “Current” column.

 

See also “Life, Commission”, “Set-up, Policy Notes” and “Life, Compliance”.