Asset Share
The accumulation of premiums paid into a policy after deducting amounts to cover expenses, charges and tax (for life policies) and after crediting or debiting amounts to reflect the actual investment returns achieved by a fund.

Conventional
A type of with-profits policy where the payment of premiums guarantees an amount in the future.

Deposit Administration
A type of policy that receives smoothed investment returns, however it does not participate in the profits or losses of the company.

Market Value Adjuster (MVA)/Market Value Reduction (MVR)
A reduction that may be applied to a policy when part or all of the policy is being cashed in. There are certain periods where an MVR cannot be applied – the policy documents will give further information on these circumstances.

Notional Personal Fund
The guaranteed benefit for a policy; this builds up as premiums are paid into the fund and annual bonuses are added.

Smoothing
This is the term given to the way in which providers reduce the impact on policyholder payouts of the variation (sometimes quite a large variation) in the returns earned year on year by the fund.

Unitised
This is a with-profits policy in which the premiums are used to purchase units in a with-profits fund.

With-profits bond
A ‘unitised’ with-profits life policy, where the premium is paid in a single lump sum.

Working Capital
Refers to the amount by which the investments of the fund are greater than the amounts already promised to policyholders by way of guaranteed amounts and bonuses.

Skandia With-Profits Analyser
The Skandia With-Profits Analyser is available through Skandia Investment Solutions. Visit skandia.co.uk/adviser to get started.