Equity Biased Fund (EBF)
The EBF Bonus Component effective from 1 April 2012 is 1.7% p.a.
EBF returns consist of two parts – the Guarantee Component and the Bonus Component. Interest on EBF accounts is calculated monthly at a rate equal to the total of 1/12th of the average annual Guarantee Component for that month and 1/12th of the annual Bonus Component.
Guarantee Component - this rate can fluctuate each month. It is the interest that would have accumulated in a Seven-Days-Notice Local Authority Deposit Account during the previous month. 1/12th of the annual rates are applied to EBF accounts held for the relevant month.
Bonus Component – this rate is usually declared by the end of April each year. It is effective from 1 April and remains the same for the whole of the Scheme year. The Bonus Component is calculated by the Schemes’ Actuary. It is based on an investment portfolio equivalent to the NAPS asset allocation, as this is a reasonable reflection of a long-term investment strategy for AVCs. It is possible for the Bonus Component to be zero.
Total annualised interest rates so far this year (since April 2012)
Equity Biased Fund (EBF) |
|
| Date | Total annualised rate* |
| April 2012 | 2.025% |
* Rates include bonus component of 1.7% p.a. up to 31 March 2013
Actual returns over the past 5 years:
| To April | Total interest rate* | Bonus rate included in total interest rate |
| 2012 | 4.778% | 4.3% |
| 2011 | 3.437% | 3.0% |
| 2010 | 0.373% | 0.0% |
| 2009 | 9.11% | 5.0% |
| 2008 | 11.07% | 4.9% |
| 2007 | 15.70% | 9.8% |
* Total interest rates include the bonus component shown in the right hand column