The effect of market volatility on fund risk ratings

Equities fell into their quickest bear market in history and large swings in the price of oil, whilst fixed income markets were impacted by the range of monetary and fiscal responses to the COVID-19 pandemic.

Zurich Investments’ philosophy and process

The Prisma funds aim to deliver risk-targeted versions of our diversified multi-asset fund, Active Asset Allocation (AAA) Fund. They follow Zurich Investments’ long-term philosophy of investing in real assets and our well-established top-down investment process with a strong emphasis on asset allocation.

What does this mean for your clients?

Extreme market volatility over a short period does not change the goal of the funds, which is to generate long-term capital growth while targeting their respective volatility ranges over a five year period. However, the most recent quarter of extreme volatility and the potential for increased market volatility over the remainder of the year means that the Prisma funds’ volatility could be elevated for a period of time. The Prisma funds continue to target their respective volatility bands. The Prisma process is monitored and reviewed on an ongoing basis and amended as required to enable the Prisma funds to continue to achieve their goals as investment markets change.

Learn more

The Prisma Range of Multi-Asset Funds is available across the Zurich suite of Pension, Approved Retirement Funds (ARF), Approved Minimum Retirement Funds (AMRF) and Savings and Investment products.

You can find further information on each fund in the Zurich fund range in our Fund Guide Brochure. You can also download our Principles for long-term investment consumer flyer here. For more information speak to your Zurich Broker Consultant.