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Eagle Star SuperCAPP Fund
Fund Description
The Eagle Star SuperCAPP Fund is a unitised with-profits fund that aims to deliver a regular return to policyholders consistent with prevailing medium-term interest rates while maintaining the potential for higher growth than a bank deposit account.
Investment earnings on the SuperCAPP Fund are distributed to policyholders through Annual Dividends that aim to provide a steady accumulation of policy benefits from year to year. A Special Dividend may also be paid on withdrawal of money invested in the fund for five or more years. The SuperCAPP dividend mechanism aims to provide a smoothed distribution of the fund's investment earnings to policyholders. Although the percentage of investment earnings distributed to individual SuperCAPP policyholders will vary, SuperCAPP policyholders in aggregate will receive at least 95% of the earnings on their collective investment in the fund.
The unit price for the SuperCAPP Fund increases in line with Annual Dividends.
The value of a policy's SuperCAPP unit holdings will normally be determined by applying this unit price to the
policy's unit holding. When SuperCAPP units are encashed by the policyholder after five or more years,
the policy value may be increased by the addition of a Special Dividend. In certain circumstances,
such as a period of sustained market underperformance, encashment values may be reduced by the application
of a Market Level Adjustment (MLA). The fund is managed prudently and Zurich Life does not expect to apply
an MLA other than in exceptional circumstances. However, an MLA may be applied if the
Appointed Actuary judges it necessary to balance the interests of all policyholders in the SuperCAPP Fund.
An MLA will not be applied on death. This fund is managed by Eagle Star Investments.
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