The Universal Life (UL) fund is managed by ACE Life as follows:
- Investment Objective
To maximize and stabilize the long-term net income (after tax) of the investment portfolio.
- Investment Strategy
To invest in a portfolio that can generate a reasonably stable fixed income for medium- and long-term investments, which includes debt instruments (mainly debentures, medium- and long-term deposits and other fixed-income media) issued by the state, private financial institutions or other economic entities established and operating under applicable laws in Vietnam.
- Investment Asset Structure
% of NAV
0% - 100%
0% - 40%
0% - 40%
0% - 10%
Cash and deposits
0% - 20%
- Investment Benefits for Policyholders
* The UL fund is formed from the deposit premiums of UL policies after deducting allocation fees, the cost of insurance charges, policy administration fees and other fees (as specified in “Regulations on deducted fees”). The UL fund is separate from the Owners’ fund and other ACE Life policyholders’ funds.
* We regularly calculate the actual investment income (after deducting expenses for investment activities) of assets backing the UL fund. We then derive an actual investment yield. The fees for investment activities include transaction fees for fund assets such as banking, brokerage and similar fees paid to third parties.
* Based on the estimated investment yield, ACE Life will decide on an interest rate applied to the contract account value after retaining the management fund fee. The management fund fee will go into investment management expenses, comprising salaries and bonuses for investment officers, assets amortization, investment management software and other related costs. The announced interest rate is applicable from the time it is communicated until ACE Life announces a new interest rate.
* Policyholders will benefit from UL investment returns. These benefits are included in the Contract Account Value in the form of monthly interest paid based on the announced interest rate. The Contract Account Value is calculated monthly, which is equal to the Contract Account Value on the same day of the previous month plus or minus the following:
a) Adding the allocated premiums (after deducting initial fees) arising in the month (if any)
b) Subtracting the monthly deduction
c) Adding the monthly interest out of the Contract Account Value
* Should ACE Life’s overall UL fund investment returns be better than forecast and the announced interest rate lower than the actual benefits at the end of the fiscal year, ACE Life will pay the difference to the Contract Account Value in the following year.
* Should ACE Life’s overall UL fund investment returns be lesser than forecast and the announced interest rate higher than the actual benefits at the end of the fiscal year, the announced interest rate on policyholders’ Contract Account Value will remain unchanged.
* Within 90 days from the date the fiscal year ends, ACE Life will inform policyholders of the UL fund’s financial capacity and details on investment benefits applicable for that year. This information is also updated on the ACE Life website.
- Ratio of Investment Returns
The ratio of investment returns will fluctuate according to the business performance of the investment fund. However, in all cases, ACE Life guarantees the minimum interest rate on the Contract Account Value of UL products as specified in the Policy as follows:
* 4% per year for Universal Option, Preeminent Option, Senior Citizen and Family Package.
* 5% per year for the first 10 years and 4% per year for the remaining years of the Policy for Single Premium A & B.
Given the changing business environment and increasing customer demands, ACE Life reserves the right to adjust the terms and conditions of the UL Fund as necessary.