Zurich launches new Prisma Low fund

At Zurich, we have been listening to Financial Brokers seeking lower risk investment options for those leaving cash deposits. With yields depressed across other asset classes also, a low risk diversified multi-asset portfolio can offer better protection against inflation than cash deposits, which are currently running at negative interest rates for many investors.

What is Prisma Low?

Prisma Low is part of the highly successful Prisma range launched in October 2013 with over €5bn in assets. The funds have a well-developed investment process where they reflect a risk-targeted version of the Zurich Active Asset Allocation Fund (AAA). For example, each Prisma fund has an equity range, 30%-60% in Prisma 4 and 15%-30% in Prisma 3, and its equity holding reflects the Zurich Investments current view as per the AAA fund. If we are at the upper end of the equity range, 15%-65% of the AAA fund, then each Prisma Fund will be at the upper end of its range.

Prisma Low has the lowest risk/return profile in the Prisma range - with an equity range of 0-10% and the majority of the fund invested in short duration corporate and government bonds. We see Prisma Low as a first step into investment markets for some investors and following an initial investment in Prisma Low, investors may subsequently allocate some assets to Prisma 2, Prisma 3 or higher.

Who might Prisma Low be suitable for?

One core market envisaged for Prisma Low is for a brokers corporate client or self-administered pension scheme with significant cash on deposit at negative rates of interest to replace a portion of these deposits with an element of investment risk to improve the overall portfolio return.

Speaking about the launch of the new Prisma Low fund, David Walls, Head of Retail Investment Sales at Zurich said; “We are delighted to bring Prisma Low to the market at a time when more and more deposit offerings are charging the investor for holding cash. We have seen many pension clients now being charged -0.65% on deposits and Prisma Low offers an excellent alternative for some of this cash.”

Global strength, local excellence

Zurich Life Assurance plc is a part of the Zurich Insurance Group, a leading multi-line insurance group that serves its customers in global and local markets. Zurich Insurance Company Ltd is rated AA/stable. Zurich Life is one of Ireland's most successful life insurance companies, offering a full range of pension, investment and protection products and has funds under management of more than €28 billion.*

For more information

The Prisma Low Fund and Zurich’s Prisma fund range is available across the Zurich suite of Pensions, Savings and Investment products.

You can find more information by speaking to your Zurich Broker Consultant or visiting the Prisma Low fund page on zurichbroker.ie. 

*Source: Zurich Life as at 31/03/2021