Structures of Investment-linked Funds 投資相連基金的結構

Accumulation Units 累積單位

With accumulation units, all investment profits are retained and reinvested in the original fund. The profits increase the unit price, while the number of units held by the policyholder remains unchanged.

Investment losses are reflected in a lower unit price. For investment gains and losses themselves, this structure changes the unit price rather than the number of units; accumulation does not mean that the investment cannot make a loss.

Distribution Units 分派單位

With distribution units, all investment profits are allocated to investors as bonus units. The policyholder therefore holds more units, while the unit price remains unchanged.

Under this structure as used in the syllabus, investment losses are reflected in fewer units, with the unit price remaining unchanged. An unchanged unit price therefore does not mean that the total value of the holding is guaranteed.

Investment Results and Total Unit Value 投資損益與單位總值

Both structures give the policyholder all investment profits and expose them to all investment losses; the difference is whether the results appear in the price or the number of units. Allocating bonus units does not itself produce a higher investment return than reinvesting profits.

The total value of a holding equals the number of units multiplied by the unit price. With the same starting value and investment results, and no other transactions or charges, the two structures can produce the same total value. Both price and quantity must be considered when comparing holdings.

If a calculation question specifies that a charge is deducted from the premium first, calculate the net amount available for unit allocation and then divide it by the unit price. When subsequently accounting for investment profits, adjust the price or quantity according to the structure, without counting the same profit in both.