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Update on the Z Cautious Growth Fund

21 Jul 2026

We're committed to keeping you updated on anything that could affect your pension savings.  We therefore wanted to provide an update regarding the Z Cautious Growth Fund and a correction exercise currently being carried out. 

What is the Z Cautious Growth Fund?

The Z Cautious Growth Fund is a blended fund. It invests in a mix of underlying funds to balance growth potential with investment risk.   The latest factsheet for the Z Cautious Growth Fund can be found here.

To help the fund achieve its investment goals, the amount invested in each underlying fund needs to be checked and adjusted regularly. This process is called rebalancing.

What Happened?

Scottish Widows has let the Trustees know that the Z Cautious Growth Fund wasn’t rebalanced properly between April 2022 and February 2024.  This means the fund didn’t hold the correct mix of its investments during that time.  

This had an impact on both:

  • The overall performance of the fund; and

  • The fund's unit price for members who invested in, switched into, or switched out of the fund during the affected period

Assessing the Impact

Scottish Widows has looked into the issue carefully to see if any members lost money because of the mistake.  

This review has been complicated and taken some time because there were many transactions to check, and it was necessary to work out how each member was affected.  

The good news is not everyone invested in the Z Cautious Growth Fund during the affected period lost money.

Putting Things Right

We’re working to put things right for affected members, including adding interest to make up for the time that’s passed since the error. 

In most cases, the amounts involved are relatively small.  

What This Means for You 

If you are due a correction for this error and:
  • You're still part of the ZCashBuilder arrangement we'll add extra units to your ZCashBuilder account. These changes won’t affect your annual pension tax contribution limits. Instead, they’ll be treated as a correction to your pension benefits, not as a new contribution.
  • You have a pension in payment and took your ZCashBuilder fund towards your tax-free cash sum, we will write to you directly. 
  • You have taken your ZCashBuilder benefits, either at retirement or as a transfer out Broadstone will try and contact either you or the receiving scheme.  

Further Information

We’ve worked with the Trustees and Scottish Widows to make sure we identify any members who were negatively affected and take the right steps to fix things.  

If you have any questions about the Z Cautious Growth Fund or your pension benefits, please contact us using the details provided below.

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.