Zurich is closing the Invesco Income and Invesco High Income funds to new business
06 January 2020
Zurich is removing the Invesco Income and Invesco High Income funds from the Sterling and Zurich panel propositions
As part of our commitment to customers, we regularly review the performance and ongoing suitability of the funds available through our products. We call this ‘funds governance’ and if a fund continues to fall short of these standards, we’ll withdraw it from our fund range.
Our funds governance process has identified that the Invesco Income and Invesco High Income funds have been failing to meet the performance targets set by the fund manager. We’ve also become concerned about an ongoing reduction in size of the funds and the manager’s ability to manage liquidity effectively over the longer term i.e. to ensure that there are enough sufficiently liquid assets in the funds to manage investment outflows.
As a result, we’ve decided to remove these funds from the fund ranges that we make available to our customers.
Funds and Products affected by closure
This affects customers invested in these funds through the following products:
Zurich Investment Bond
- Zurich Invesco Income AL
- Zurich Invesco Income G4 AL
Zurich Pension
- Zurich Invesco Income ZP
- Zurich Invesco High Income ZP
- Zurich Invesco Income AP
- Zurich Invesco Income 1% AP
- Zurich Invesco Income Accumulation
- AP Zurich Invesco Income Capital AP
Sterling Investment Bond
- Sterling Invesco Income
- Sterling Invesco Income 2
- Sterling Invesco High Income
- Sterling Invesco High Income 2
Sterling ISA and Sterling Investment Account
- Invesco High Income Z Inc
- Invesco Income Z Inc
How does this affect customers investing in these funds?
Existing customers can remain invested in the funds. If they pay into the funds by direct debit, they can continue to do so. However, we’ll no longer accept increases to direct debits, additional lump sum investments or switches into the funds.
The decision to withdraw these funds for new customers does not necessarily affect their ongoing suitability for existing investors.
How will we communicate this closure?
We have written to you with a list of their clients invested in these funds. We’ll also write to your clients but if any of them contact us, we’ll strongly advise them to contact you for more information.
Please note, if you have clients invested in this fund through a Zurich Portfolio then you need to know that we don’t review these funds in the same way as we do for our panel funds and they are still available to new customers.