Closing or merging funds

Sometimes, it is best for both investors and Zurich to close a fund or merge it with another fund. This is a decision we make carefully and is another example of discretion. The main reasons are:

• We may simplify our fund range where there are funds with very similar aims or ways of investing
• The fund manager isn’t able to offer the required services anymore or can only do so at a cost that isn’t commercially sustainable
• The fund might not be big enough to support the costs of running it, which could mean lower returns for investors
• The fund might not have been performing well over an extended period, and we don’t think there are enough signs that it will get better
• We might offer new funds that better meet the objectives of customers

If we think a fund needs to close or merge, we might stop new investments from being accepted into it. But we may still allow ongoing payments from existing plans

What happens to my money if Zurich closes or merges a fund?

If we plan to close a fund where your money is invested, we will let you know in advance. We will automatically move your investment into a reasonably similar fund. When we do this, we consider things like the fund objectives, charges and sector of the closing fund – similar funds are grouped into sectors to allow them to be compared more easily. If a similar fund is not available, we will move your money into a specific named fund if this is mentioned in your terms and conditions. You can choose to move your money into another fund at no extra cost if you prefer.

Sometimes we may need to close a fund without letting you know in advance. Where possible, we will give you as much notice as we can, so you have time to decide what you want to do and take advice if needed.

If we plan to merge any funds where your money is invested, we will let you know. We will move your units into the new merged fund at their selling price, unless you choose to switch to another fund.