April 03, 2019
April 03, 2019 | Media Releases
Zurich Investments announcement: Equity Income Scheme
Zurich Investment Management Limited (Zurich Investments) has moved quickly to protect the interests of investors in its Equity Income Scheme (the Fund) following an announcement by fund manager Denning Pryce that it would cease its asset management operations after the 2019 financial year-end.
Zurich Investments is the issuer and responsible entity for the Fund. The Fund has been managed by local asset management firm Denning Pryce since October 2006. Denning Pryce announced yesterday it would cease trading at the end of the current financial year.
Mathew Drennan, Zurich’s Head of Savings & Investments, said the primary concern is to protect the interests of the fund’s unitholders.
“We regret the decision of the fund manager but our paramount concern is to ensure investors’ interests are protected and the value of their investment is maximised”, Mr Drennan said.
“To that aim, our Board has determined that the Fund now be effectively suspended prior to winding it up fully once Denning Pryce have formally ceased operations.”
The Manager has advised that a material level of franking credits is expected to be available to investors via the underlying equity holdings within the Fund. The decision to suspend withdrawals from the Fund was taken in order to protect the Fund’s ability to benefit from these franking credits, and thus its ability to pass on the benefit to individual unitholders.
“The quantum of the franking credit benefit is substantial, and so preserving our ability to pass the benefit back to investors is, again, in the best interests of our investors”, Drennan said.
The winding up of the Fund is expected to occur in the second half of July, following the 2019 franking year end, and Zurich Investments will communicate progress as appropriate with adviser and investors.
Whilst applications to and withdrawals from the Fund have been suspended immediately, scheduled monthly income payments to investors will continue as normal.
“Zurich Investments is a proud provider of specialist investment products sourced from a diverse range of domestic and international asset managers. The decision by Denning Pryce after almost 13 years to cease operations does not alter our approach, in fact we look forward to introducing new and innovative investment products to our loyal advisers and investors”, Mr Drennan concluded.
Zurich Insurance Group (Zurich) is a leading multi-line insurer that serves its customers in global and local markets. With about 54,000 employees, it provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The 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 (ZURVY) program, which is traded over-the-counter on OTCQX. Further information about Zurich is available at www.zurich.com.