SuperCAPP is a unitised with-profits fund, currently made up of a core portfolio of high quality government bonds complemented by equity and other investments that are held to generate returns in excess of annual dividend distributions. Its asset mix is managed to ensure that the exposure to bond, equity and other markets remains consistent with the investment aim.
- Indicative equity range: 20% - 40% of the value of the fund
- Risk rating: 2
Who should invest in the fund?
- Investors with a cautious investment outlook looking for a steady accumulation of benefits with the potential to earn excess returns from selective equity investments.
- Suitable for investors who are comfortable with a low to medium level of risk.
- Appeals to investors with a medium to long term investment horizon.
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How it works
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.
Investment earnings 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 unit price increases in line with Annual Dividends. The value of a policy's SuperCAPP unit holdings are 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 or normal retirement age. This fund is managed by Zurich Life Investments.
The investment aim for the SuperCAPP Fund is to achieve investment returns that support the distribution of Annual Dividends consistent with prevailing medium-term interest rates, while maintaining the potential to pay Special Dividends that are reasonably stable from year to year.
Annualised Performance (%)*
*Notes: Annual management charges (AMC) apply. The fund performance shown is before the full AMC is applied on your policy.
Returns are based on offer/offer performance and do not represent the return achieved by individual policies linked to the fund.
The fund price/performance shown is for the Pension / Gross of Tax Funds category.
*Source: Zurich Life
**Note: Asset Splits are updated monthly.
Why Zurich Life?
At Zurich Life, we believe that the macro economic environment is the key driver for investment market themes. We are business cycle investors, and our portfolios are constructed to take advantage of investment opportunities over all parts of the economic cycle.
Our investment managers closely co-operate to make decisions across assets, markets and sectors, taking a 'top-down' approach to identify trends and to bring the best investment opportunities to our clients.
It's widely accepted that long-term investment returns within an investor's portfolio are driven by asset allocation. Asset allocation decisions have become increasing complex over the years, due to a changing economic landscape and market volatility. At Zurich Life, we have a reputation for making the right investment decisions at the right time.