Decreasing number of unit holding ?

[Unregistered]

I started a pension scheme with Hibernian in 03/1998 and contributed to it until i left my employment in 04/2003. No contributions were made since 04/2003.
Back to 2002, and after about 5 months of constant requests, i finally got a statement of Unit holding in 01/2003.
To keep an eye on my pension, I recently requested (03/2005) a statement of unit holding which i have just received. To my stupefaction, the number of unit holding has decreased.
While i understand that the bid price of the each unit holding changes constantly, I was expecting the number of unit holding to be exactly the same.

Is my expectation correct?

Thanks in advance

 

[Conan]

This can happen if :
1. There is continuing risk benefits to be paid for (e.g. Life assurance)
2. If the fund management charge is recovered by encashment of units (to pay the typical charge of 0.75% to 1% of fund). This can arise where there is a single unit price structure rather than a bid and offer price structure.

 

[Unregistered]

Thanks, Conan.
I should have stated that the decrease in number of unit holding is only 0.52% over a period of 2 years, which will therefore tend to exclude the fund management charge theory.

Is there something fishy?

Rgds

 

[ClubMan]

If there is a monthly policy fee (usually c. Eur 3 - 5) payable then while no new contributions are being made this will be collected by way of units being encashed. Maybe something like this might explain the reduction in the number of units? This affected one Eagle Star pension fund that I have which has been paid up for a few years now but which is still charged the policy fee. Best to ask the pension provider directly in writing though to be sure.