News releases

Zurich launches new default fund solution

Zurich’s Corporate Savings business in the UK has launched today a new auto-enrolment default fund solution in conjunction with Schroders. The Zurich Dynamic Lifestyle Portfolio will be available to new and existing members of Zurich’s workplace pension schemes.

Zurich’s new default fund consists of three underlying funds. Schroders are managing the Mixed Investments and the DC Pre-Retirement funds, while the Zurich Deposit & Treasury fund is managed by Threadneedle.

The main features of the Zurich Dynamic Lifestyle Portfolio are:

  • A growth engine that combines a core equity portfolio, diversifying assets and explicit downside risk management.
  • A downside risk management process that is applied automatically in volatile market conditions, mitigating the chances of material loss of capital, whilst still allowing Schroders to manage the portfolio to deliver real returns.
  • An innovative new approach to annuity price targeting in the pre-retirement phase, with a portfolio that also seeks to reduce the effect of possible future rises in bond yields.
  • An automated de-risking facility that starts five years from an individual’s selected retirement date. This allows DC members the possibility of benefiting fully from the growth potential, whilst at the same time protecting them from large capital losses.
  • Rigorous governance monitoring and oversight

Dave Lowe, Head of Corporate Propositions for Zurich UK Life said:

“Auto-enrolment has provided a timely opportunity to review our default option. We undertook extensive customer research to find out what is important to them when making investment decisions. We have listened to what our customers want and have designed our new default fund to provide an effective, outcome-driven investment solution.”

“Following a comprehensive selection process, we appointed Schroders because we were really impressed with the innovative design they developed, as well as their excellent reputation in managing multi-asset, outcome-focussed funds.”

Stephen Bowles, Head of DC Investment at Schroders said:

“Zurich is one of the world’s leading providers of corporate life and pension services and as such had a clear set of requirements for their default investment option from the outset. We are delighted to have been able to engage with them and establish two unique strategies which have met all of their requirements.

“One of the key components of the default strategy is the automated switching between Zurich Mixed Investment and the Pre-Retirement strategies. We have undertaken extensive financial modelling to test various switching scenarios. Due to the innovative way in which the Mixed Investment fund is managed, the results indicated that it is possible to remain in the growth engine until five years from retirement whilst still protecting the portfolio from large capital losses.”


For further information, please contact:

Rajan Lakhani

Senior Media Relations Manager Zurich UK Life

Tel: +44 (020 7648 3503 Mobile: +44 (0)7875 887360


Twitter: @zurichukmedia

Estelle Bibby Senior

PR Manager Schroders Investment Management

Tel: +44 (0)20 7658 3431 Mobile:+44 (0)7770 496163


Twitter: @schroderpension

About Zurich

Zurich’s UK Life business employs approximately 1200 staff in 13 locations and offers a range of personal protection, pensions and investment policies available through financial intermediaries. Zurich UK life also provides protection and pensions policies for the corporate market available through employee benefit consultants.

Zurich’s UK Life business is operated primarily through two entities: Zurich Assurance Ltd and Sterling ISA Managers Ltd. These entities are regulated by the Prudential Regulation Authority and Financial Conduct Authority.

Zurich Insurance Group (Zurich) is a leading multi-line insurance provider with a global network of subsidiaries and offices in Europe, North America, Latin America, Asia-Pacific and the Middle East as well as other markets. It offers a wide range of general insurance and life insurance products and services for individuals, small businesses, mid-sized and large companies as well as multinational corporations. Zurich employs about 60,000 people serving customers in more than 170 countries. The Group, formerly known as Zurich Financial Services Group, is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt program (ZURVY) which is traded over-the-counter on OTCQX.

Further information about Zurich is available at

Schroders plc

Schroders is a global asset management company with £212.0 billion (EUR 261.3 billion/$344.5 billion) under management as at 31 December 2012. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.

With one of the largest networks of offices of any dedicated asset management company, we operate from 33 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at for our alerting service.

About Threadneedle

Threadneedle is a leading international investment manager with a strong track record of outperformance across asset classes. We actively manage £84.0bn (as at 31 Mar 2013) of assets, investing on behalf of individuals, pension funds, insurers and corporations. We are the 4th largest UK retail fund manager1 and the 8th largest UK fund manager by AUM. In Europe we rank in the top 40. Established in 1994 in London, Threadneedle has a presence in 16 countries.

Threadneedle's distinctive investment approach is based on creative thinking, sharing of ideas and rigorous debate. Our c.150 investment professionals invest across developed and emerging market equities, fixed income, commodities and UK property. In 2012, Threadneedle won over 100 prestigious fund management industry awards globally.

Threadneedle is owned by Ameriprise Financial (NYSE: AMP), a leading US diversified financial services company with US$708bn in assets under management and administration. As its international investment platform, Threadneedle provides Ameriprise and its retail and institutional clients with world class investment solutions.

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