Your AVC investments
Rothesay offers a selection of funds which are managed on our behalf via an arrangement we have with BlackRock. AVCs are invested in one or more of these funds and policyholders can request Rothesay make changes to the way they are invested, within the funds available, at any time.
Each fund is 'unit-linked'. This means it is divided into units of equal value. The value, or price of each unit, depends on the value of the assets of the unit-linked fund. The unit price determines the number of units you receive when you sell your units. The mix of assets in a unit-linked fund varies from fund to fund and may include direct or indirect investments. Each fund you can invest in may have a different mix of assets and a different level of risk. Units represent the way that a fund is split to identify a value we can attribute to each policyholder’s holding. Rothesay is the legal holder of these units.
The value of your AVCs
The value of your AVCs is based on the number of units you hold in each fund and the current unit price of each fund. The value is not guaranteed, and will increase or decrease in line with the performance of each of the funds.
Charges
The 2024 Annual Management Charge (AMC) for each of the available funds is shown in the table below.
For information purposes, we have also shown each fund’s Total Expense Ratio (TER) for 2024. The TER includes the 2024 AMC and other charges (such as custody and administration), where applicable. We disclose the TER on an annual look back basis. The TER shown will be updated to the 2025 TER next year, once Blackrock make it available to us.
Charges accrue daily, and are deducted against the price of units held in each fund on a regular basis. Please note the TER and AMC rates may be subject to change from time to time.
The investment funds available
The funds available and their charges are shown in the following table. Click on the name of each fund to see the latest fund factsheet. We update the factsheets for these funds quarterly.
|
Investment fund |
Total Expense Ratio (TER) * |
Annual Management Charge (AMC) |
|---|---|---|
|
0.1543% |
0.15% |
|
|
0.1241% |
0.00%** |
|
|
BlackRock Aquila Life Corporate Bond Index Fund Over 15 Years S3 |
0.1647% |
0.15% |
|
0.2612% |
0.25% |
|
|
0.1564% |
0.15% |
|
|
BlackRock Aquila Life Over 5 Years UK Index Linked Gilt Index Fund S3 |
0.1036% |
0.10% |
*The TER shown for each fund is the TER that applied in 2024.
** There is no AMC or fee applicable for the Rothesay Aquila Life Cash Fund. However, the underlying fund that the Rothesay Aquila Life Cash Fund invests in, currently the BlackRock ICS Institutional Sterling Liquidity Fund, does incur a TER fee which is estimated to be 0.125% per annum. This underlying holding and/or fee may be subject to change from time to time.
How to manage the way your AVCs are invested
You should keep the way your AVCs are invested under review to make sure it is in line with your personal circumstances. You can change the way that your AVCs are invested at any time without charge.
Some policyholders are able to use our online service to see how their AVCs are invested and, if appropriate, change the way they are invested. If you do not yet have access to this functionality or would prefer not to use it, you can contact us for information about your AVCs and/or a form to change your investments.
We recommend that you consider taking financial advice before making changes to the way your AVCs are invested. If you do not have a financial adviser, you can find one using MoneyHelper’s ‘Find a retirement adviser’ tool:
Your annual statement
We send you a statement each year showing:
For more information about your 2024 AVCs statement, including the assumptions we use in our calculations, please click on the link below.