The Zurich Investment Panel

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1 Zurich International Life The Zurich Investment Panel Your guide to create bespoke solutions for your clients For Financial Advisors only

2 The Zurich Investment Panel We ve all seen changes in the financial landscape over the past decade. This has led to customers forming a different relationship with their money and becoming increasingly aware of how they spend and invest. Across these varying market cycles, our customers need to plan for their future has remained constant. 2

3 At Zurich International Life (Zurich), we believe that the financial planning and guidance that you provide your clients is of critical importance, which is why we ensure you have access to the best solutions. As part of our commitment to helping you efficiently find the solutions and services that meet the specific needs of your diverse range of clients, we have created the Zurich Investment Panel. The Zurich investment Panel provides you with comprehensive investment solutions to match the financial planning needs of your clients. Within this guide we will take you step by step through the process of risk assessment and evaluation through to recommending the different solutions available from Zurich, which we hope will lay the foundation for a long-lasting journey between you and us. The Zurich Investment Panel a comprehensive investment solution The Zurich Investment Panel Zurich online tools The Zurich Collection Managed and Money funds Automatic Investment Strategy Select fund range (Direct and Mirror) 3

4 How can the Zurich Investment Panel help you? The Zurich Investment Panel has been created to clearly illustrate the path you need to take with your clients in order to recommend the right solution for them, including simple risk rated managed funds and lifestyling, to bespoke solutions that you can create specifically for your client. Help understand your clients better The Zurich Investment Panel Risk Profiling tool will help you measure your clients general attitude to risk and willingness to take investment risk. Provide tools to support your advisory process The Zurich Investment Panel Portfolio Builder will provide you with a new way of identifying and creating investment solutions specific to each of your clients risk profile and financial goals. Offer you a range of solutions As well as the managed funds the Select fund range provides you with new solutions for your clients to ensure you can offer investment options across all asset classes. Help you develop strong relationships with clients The Zurich Investment Panel is designed to become part of your daily sales process and should make investment discussions with your client more straightforward and relevant. Maintain better control of your clients portfolios The Zurich Investment Panel will enhance how you interact with your clients and their investments. Tailored solutions: Enables you to recommend diversified investment solutions across asset classes and tailored to each client. Control for your client: Helps manage interaction around your client s investment by getting them actively involved in the fund selection process. Control for you: Keeps you involved in your client s investment solutions on an ongoing basis and facilitates you in regularly reviewing their investments. Access to world class fund managers selected by Zurich. 4

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6 Zurich online tools* tailored support The Zurich online tools allow you to construct investment solutions for your client at the click of a button. Where a client seeks a more tailored solution to their investment needs, Zurich provides you with the necessary tools and building blocks to create that solution. Introduction Risk profiler This will help you identify your client s attitude to investment risk as well as suggesting an asset allocation appropriate for their investment period. Due to the carefully designed psychometric questionnaire and system, you will be able to create and archive a full risk profile report as part of the service you offer. Results are graphically illustrated and evaluated to help your client understand their risk category, their position in it and their probability of moving to an alternative risk category. Savings and Investment Planner With this tool, your client s attitude to risk is used to show the trade-off between potential risk and reward for their investment and the likelihood of achieving their target. You can create any number of what if forecasts and provide picture illustrations to explain different investment strategies, inputs and targets, all very simply and within seconds. Portfolio planner This is a dynamic planning tool that allows you to create multiple what if forecasts based on your client s risk profile, or an alternative. However, this time you can include your client s existing products and other assets into the forecasts, which can be displayed as a final fund value or as income. By showing forecasts or potential outcomes you can more easily compare and communicate different scenarios to your client. Portfolio Builder Here you can create a portfolio of funds based on the asset mix suggested by the Risk Profiler or a risk profile selected in one of the planning tools. The tool is designed to give you quick, easy access to detailed data on each fund, including past performance, fund ratings, fund charges, yield and launch date. A range of comprehensive fund reports and factsheets are also available, all of which help you to make sure that your fund selection is truly robust and compatible with your client s attitude to risk. *only available in the Middle East 6

7 Funds risk assessor This tool gives you the power to quickly and comprehensively risk rate any fund or portfolio of funds you ve selected in the Portfolio Builder. This powerful tool enables you to accurately compare the selected portfolio of funds against the client s risk profile and make adjustments if necessary. Used with the Portfolio Builder, the tool can be used to help create and validate a range of risk based portfolios. The importance of risk profiling in effective client management cannot be overstated and there are a number of advantages for you. Advantages of risk profiling An accurate assessment of risk allows for a more informed investment conversation with your client. You can provide investment solutions tailored to your client s risk profile which should give them extra confidence in the decision they make. It is important to note that risk profiling is not intended to replace your investment advice or recommendations. Match risk profiles to portfolio volatility When you use the Zurich online tools you can select up to ten funds to include in the portfolio. Working with your client, you identify the funds and adjust the allocation to each fund to meet your client s requirements. The Zurich adviser tools will calculate the overall volatility and risk profile of the tailored portfolio. You should ensure it matches the risk profile of your client. If it does not match, then you should adjust the allocations to each fund and recalculate. 7

8 The Zurich Collection Introduction to the different solutions available The Zurich Collection provides several different investment solutions for you to choose from. The Select fund range which gives your clients a choice across a range of sectors and asset classes. Depending on which product your client has, these are available as either Direct or Mirror funds. The Zurich Managed and Money funds which offer a range of diversified multiasset funds designed to suit a range of risk appetites. The Zurich Automatic Investment Strategy which automatically switches clients through up to five diversified and risk rated portfolios along their journey to policy maturity. This is only available for Vista and InvestPlus policies bought after January

9 Select fund range (Direct and Mirror) a hand selected fund range A fund range built around the needs of your clients Through the Select fund range, we offer you and your customers funds from a range of global fund managers ensuring that you have a choice of funds from which to choose. The Select fund range fund managers have been chosen based on a number of factors including diversity and coverage, regulatory compliance, operational effectiveness and the ability to provide ongoing training and support for you. Through the Select fund range, our aim is to provide access to those fund managers, ensuring you have a broader investment range. The funds meet a number of selection criteria and have been chosen from each of the major asset classes. Our approach seeks to provide you with enough variety to ensure your customers have a well rounded proposition from which you can build a more individual portfolio. The selection process considers a number of factors. We can t guarantee these funds will continue to perform in the same way as they may have historically, which is why we are interested in experienced, talented fund managers who have sufficient investment resources and an understandable, logical and repeatable investment process. We are committed to helping you save time Share rationale for any selection or de-selection decisions. Make decisions that are aligned with our products and aim to meet the needs of you and your clients. Aim to ensure funds remain fit to stay in the range by regular monitoring. You can make informed decisions with our clear information on our funds. Simplified solution for you and your client A broad choice of researched funds to help you create client portfolios. Saves you time and resources. Allows you to demonstrate the credibility of your fund selection process underpinned by a robust, consistent investment selection process. Provides useful tools and resources for delivering solid investment advice. The Select fund range is not a recommendation to buy funds. Equally, if a fund you already own is not available on the Select fund range, we are not recommending you sell it. Don t forget When you are looking through the range of categories available to you, it s important to remember the benefits of diversification. Combining multiple asset classes typically reduces the risk in your portfolio. Even though we are trying to take some of the hard work out of building a portfolio, you still have to research the funds you are interested in. You need a thorough understanding of what they do, so you can be sure you are comfortable with the risks they take. Please don t underestimate how important it is for you to review your clients investments regularly. If you are going to build your own portfolio, you need to set aside time to monitor each holding and be certain that it is still appropriate for your client. 9

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11 Managed and Money funds oversight from Zurich Looking for risk-rated portfolios? If you want to make life simpler and leave selection and asset allocation decisions to the specialists, the Zurich Managed fund range may be the answer. It consists of five multi-asset funds matched to five attitudes to risk and are closely monitored by Zurich. The funds are designed to reflect a range of risk levels, so whatever your clients appetite for risk there is likely to be a fund to suit. Example chart below US dollar Defensive fund asset allocation benchmark Dollar bonds 77.5% Everyone has different feelings about the risks they re prepared to take with their money. But with so many investments to choose from, finding an approach that fits with your clients aims and attitude to risk can be difficult. That s where the five funds from the Zurich Managed fund range come in, making it easier to choose an investment your clients are comfortable with and providing a solution that is managed around their attitude to risk. US dollar Cautious fund asset allocation benchmark Dollar bonds 57.5% Cash 2.5% Cash 2.5% Global equities 5% Global equities 5% US equities 15% US equities 35% US dollar Blue Chip fund asset allocation benchmark US dollar Performance fund asset allocation benchmark US equities 50% Global equities 25% US equities 55% Cash 2.5% Cash 2.5% Global equities 10% Dollar bonds 37.5% Dollar bonds 17.5% US dollar Adventurous fund asset allocation benchmark Cash 2.5% Global equities 60% US equities 37.5% The Zurich Managed funds allow your clients can access opportunities from around the globe within a single risk-rated fund. Detailed information about the Zurich Managed funds is available at Source: Zurich International Life Limited as at 01/12/15 11

12 Automatic Investment Strategy making investing simple This is only available via the Zurich Collection for Vista and InvestPlus bought after January There are many events in the future which we may need to start saving for. Now, more than ever, providing for future years can be source of concern. Not only do we need to review, and often revise, the amount we save, it s also important to ensure we are comfortable with the level of risk we are taking with our money. 12

13 Automatic Investment Strategy (AIS) At Zurich we understand the need for peace of mind when planning investment portfolios. This is why we offer the AIS a unique solution as an investment option. The AIS is available in US dollars, Sterling and Euros and by choosing the AIS, your clients savings are automatically switched from equity based Zurich Managed funds to bond based Zurich Managed funds as they move closer to policy maturity. This reduces their exposure to investment risk over time and helps to protect any gains made during the early years of their policy. The chart below illustrates how this works. The AIS reduces investment risk by automatically switching clients investments through up to five investment portfolios depending on how long is left until their policy maturity date, each portfolio offering less exposure to risk than then previous portfolio. 100% Portfolio 1 Portfolio 2 Portfolio 3 Portfolio 4 Portfolio 5 80% 60% 40% 20% 0% Over Years before retirement Higher Risk Lower Risk Adventurous fund Performance fund Blue Chip fund Cautious fund Defensive fund Money Market fund 13

14 The journey continues We hope that this guide has given you an overview of the benefits that the Zurich Investment Panel can bring you and your clients. As the needs of your clients and your business evolve, the Zurich Investment panel will continue to transform for the future. We re here to help you keep up to date with the changing world of investing giving you the support and information you need, at the right time, in the right way. If you re in the Middle East, to find out more visit us at or speak to your Zurich representative to book a demonstration. 14

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16 Important information Zurich International Life is a business name of Zurich International Life Limited. Zurich International Life Limited is fully authorised under the Isle of Man Insurance Act 2008 and is regulated by the Isle of Man Financial Services Authority which ensures that the company has sound and professional management and provision has been made to protect plan holders/policy owners. For life assurance companies authorised in the Isle of Man, the Isle of Man s Life Assurance (Compensation of Policyholders) Regulations 1991, ensure that in the event of a life assurance company being unable to meet its liabilities to its plan holders/policy owners, up to 90% of the liability to the protected plan holders/policy owners will be met. The protection only applies to the solvency of Zurich International Life Limited and does not extend to protecting the value of the assets held within any unit-linked funds linked to your plan/policy. Not for sale to residents or nationals of the United States including any United States federally controlled territory. Zurich International Life Limited is registered in Bahrain under Commercial Registration No and is licensed as an Overseas Insurance Firm Life Insurance by the Central Bank of Bahrain. Zurich International Life Limited is authorised by the Qatar Financial Centre Regulatory Authority. Zurich International Life Limited is registered (Registration No. 63) under UAE Federal Law Number 6 of 2007, and its activities in the UAE are governed by such law. Calls may be recorded or monitored in order to offer additional security, resolve complaints and for training, administrative and quality purposes. Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Financial Services Authority. Registered in the Isle of Man number 20126C. Registered office: Athol Street, Douglas, Isle of Man, IM99 1EF, British Isles. Telephone Telefax MSP13592 ( ) (02/16) RRD