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ASSET ALLOCATION MUST BE ACTIVELY MANAGED
Richard Temperley
Head of Investment Development – Zurich
Source: Zurich Life, September 2014
Active Management adds value
Source: Zurich Life, September 2014
25 years – Good Active Management Expertise
Source: Zurich Life, September 2014
25 years – Good Active Management Expertise
Source: Zurich Life, September 2014
25 years – Good Active Management Expertise
“Valuations and unprecedented policy response make strong equity gains possible”
Zurich Investment Outlook - 2009
Making the Right Calls
Active Fund ManagementActive Management of Asset Classes
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% A
lloca
tio
n
Cash
Alternatives
Property
Bonds
Equities
Source: Zurich Life, September 2014
Active Management of Asset Classes
ProcessAn Active Management Process
THE OUTLOOK FOR ASSET CLASSES
Equity Bull Market - a record breaking run…
Source: Zurich Life, September 2014
4thLongest bull market on
record!
Bull Market’s End – the warning signs…
Very tight monetary policy
Sustained acceleration in inflation
A big rise in short-term interest rates
An overheating economy
Severe overvaluation of equities compared with interest rates
Source: BlackRock, September 2014
Long-term Rates – Government 10-year Bond Yields
Short-term Rates – ECB
Source: European Central Bank, September 2014
House Prices – Global Developed Markets
Source: BIG, 24.06.14
Asset Class Performance
Source: J.P. Morgan, Guide to Markets, Q3 2014.
A Multi-asset solution is the answer
Warning: Past performance is not a reliable guide to future performanceWarning: The value of your investment may go down as well as upWarning: Benefits may be affected by changes in currency exchange rates.Warning: If you invest in this product you may lose some or all of the money you invest.
