Zurich launches Target Date Funds for its International Corporate Plans
Zurich’s International business (Zurich International) in August 2017 launched its Target Date Funds (TDFs) as part of the investment proposition available with the International Pension Plan (IPP), and International Corporate Investment Plan (ICIP).
Zurich International claims it is the first financial services group to offer a US Dollar TDF solution in the International Pensions & Savings market. With their focus on simplicity, value for money and positive retirement outcomes as well as a one-stop investment solution for employees, TDFs could be the ideal default investment solution for employers. Zurich’s TDFs are available at a cost of 0.55%.
The underlying assets are managed by Morningstar Investment Management Europe (Morningstar) to remove any provider bias. Morningstar operates as a fully independent asset manager and with an open architecture approach, allowing it to select from the full universe of offshore funds including both active and passive strategies.
The new funds will be offered through the Isle of Man version of the IPP product. The ICIP is a variant of the IPP where the plan administration is done by a third-party, usually the employer or a specialized TPA – only the investment administration is done by Zurich.