Investment Accounts are special objects which are used in the Universal Life, Annuity, Par Products and Group Annuity modules, and allows you to define multiple investment options policyholder funds within each Cell.
Investment Accounts allow you to differentiate between investment options with respect to credited rate, earned rate, spread, expense charges and commissions. You may also define whether a given Investment Account is a segregated fund (seg fund) or part of general funds, and whether it is exempt or non-exempt.
Each Investment Account can have a different crediting rate and earned rate to simulate a fully matched portfolio. Fund based commissions could also differ as can management fees. For example, equity portfolios likely earn different interest and have higher expense charges than money market funds. This can easily be modeled using investment accounts. Another use of Investment Accounts is to test "credit squeeze".
In setting valuation or pricing interest assumptions, you can differentiate the assumed earned rate between the various Investment Accounts and also define a separate earned rate on any additional cashflow outside the policyholder funds that reflect the general funds of the company.
A maximum of 50 Investment Accounts can be selected for Fund 1
within a UL cell, while the Side Fund may use a single Investment
Account (non-exempt). One can similarly select up to 50
Investment Accounts in the Annuity and Group Annuity modules.
With regard to the Par Products module, only one Investment Account
is allowed per cell.