Financial products that use UCITS funds

Unit-linked life insurance

UCITS funds are often an underlying investment of certain life insurance products known as unit-linked policies. The value of the policy is determined by the performance of the underlying investment funds in which it invests. Investments through insurance policies do not allow the same benefits of rapid access as direct purchase of funds. However, depending on the rules in the investor’s home country or the country where the policy is issued, underlying investments may benefit from favourable tax treatment.

Unit-linked pension products

Pension plans generally may also use UCITS funds as their underlying assets. Depending on the rules in the investor’s home country, they may be combined with other types of fund or direct investment in assets such as shares or bonds. However, the rules governing pension fund investment, as well as the way pension scheme investments and payments are taxed, vary greatly from country to country, and help from a financial advisor is essential.