Your Pension - Your Future 

Blog

ZCashBuilder Fund Updates: Changes to Investment Benchmarks

15 Jun 2026

We’ve got some important updates to share about two funds in the Scheme’s self-select range. These changes aim to improve diversification and reduce risk in the funds.

L&G Future World Fund – Benchmark and Name Change

From March 2026, the benchmark for measuring the performance of the LGIM Future World Fund changed.
  • Old benchmark: FTSE All-World ex CW Climate Balanced Factors Index
  • New benchmark: iSTOXX L&G Global Multi-Factor ESG Index

At the same time, the fund renamed to the: Future World Global Multi-Factor Equity Index Fund

What does this mean?

The new benchmark uses a multi-factor investment approach which is based on L&G’s own method.  Multi-factor investing is an approach which uses different approaches like value, quality and momentum to pick and weight different companies to invest in.  It also includes environmental, social, and governance (ESG) factors.  

This approach enables L&G to have more input into the benchmark so they can make improvements and adjustments over time.

What should members expect?

  • The fund’s investment goal hasn’t changed.
  • Some providers, like Scottish Widows, may still use the old benchmark because of data availability. This could create small differences when comparing performance figures.

HSBC Islamic Global Equity Index Fund – Benchmark Update

The HSBC Islamic Global Equity Index Fund has also recently changed its benchmark:
  • Old benchmark: Dow Jones Islamic Titans 100 Index
  • New benchmark: S&P Global 1200 Shariah Index

This change has already been implemented by Scottish Widows.

Why has the benchmark changed?

The new benchmark has been selected to:  
  • Widen diversification by increasing the number of stocks from approximately 100 to over 500.  
  • Lower concentration risk, especially in the US market and technology sector.  
  • Offer an investment profile that aligns better with a global equity market approach, while still adhering fully to Islamic (Shariah) principles.  

What are the benefits?

  • Broader exposure to global markets.
  • Reduced reliance on a small number of large technology companies.
  • Investments will still follow strict Shariah rules. 
  • A reduction in fund charges, which has already been applied.
Importantly, the change does not affect the religious screening process. It’s still thorough and independently checked.  
You can find more information on the investments available within ZCashBuilder in the Investment Guide. 

None of the information given on this website can give you legal rights or benefits that differ from those provided in the Trust Deed and Rules. In the case of uncertainty or conflict between the content on this website and the Trust Deed and Rules, the Trust Deed and Rules (as amended from time to time) will prevail. 

You should consider taking independent financial advice on your options in relation to your benefits under the Scheme. Neither the Scheme Trustee (Zurich Financial Services UK Pension Trustee Limited) nor any member of the Zurich Group (i.e. Zurich Insurance Group Ltd - registered in Switzerland with number CH-020.3.023.089-6 and its direct and indirect subsidiaries) are able to provide you with financial advice or accept any liability for any decision you make with regards to your retirement options.