Prisma

The Zurich Fund Platform

For Financial Advisors only

Contents

Prisma: The Zurich Fund Platform 1

Risk Profiling 5

Diversification: Core & Satellite Approach 7

Prisma Portfolio Builder: Platform Solutions 10

Prisma Tailored Portfolios 11

Prisma Select Portfolios 14

Prisma Managed Portfolios 15

The Prisma Risk Profiler tool is designed only as an indicator that may help your clients understand how comfortable they are with accepting certain levels of risk before investing. The output of the Prisma Risk Profiler does not constitute any kind of advice and should not be solely relied upon when making a decision in relation to any of the Prisma Portfolio Solutions. It is essential that there is a detailed assessment made of your client’s individual circumstances, so that they can select financial products and/or strategies that may suit their risk and return preferences, as well as their overall financial situation.

Zurich Life Assurance plc accepts no responsibility for any action taken as a result of you or your client using the Prisma Risk Profiler or suggested Prisma Portfolio Solutions.

Important Information

Prisma is a new fund platform. It enables you to provide investment solutions to your clients, tailored to their specific needs.

In addition to the market leading active and passive funds already available from Zurich Life, we have now added a suite of externally managed funds, expertly selected by the Zurich Global Fund Desk. With this comprehensive fund range, you can easily construct diversified investment solutions for your clients that accurately match their risk profile.

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Prisma: The Zurich Fund Platform

The Prisma Fund Platform

• Risk Profiler

• Portfolio Builder

• World Class Global Fund Managers

• Fund Choices across Asset Classes

• Investment Expertise of Zurich Life

New

New

New

New

Renowned

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Prisma: The Fund Managers

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How does Prisma work?

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Prisma - a step by step approach

You and your client can use Zurich Life’s Prisma Platform to identify an investment solution.

The Prisma Platform is accessed via www.zurichlife.ie/brokercentre.

By asking seven investment-related questions, your client is categorised into a 1 - 7 risk profile.

You and your client are then presented with three approaches to building a portfolio and can select the most suitable portfolio to match the client’s risk profile.

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Risk Profiler

Portfolio Builder

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Client & BrokerDiscuss

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Tailored

Select

Managed

How can the Prisma Platform help you?

The Prisma Platform will enhance how you interact with your clients and their investments.

• The Prisma Risk Profiler will help measure your clients’ general attitude to risk and willingness to take investment risk.

• The Prisma Portfolio Builder will provide you with a new way of identifying and creating investment solutions specific to each of your clients.

• The Prisma range of fund managers and fund choices will provide you with new solutions for your clients and ensure you can offer investment options across all asset classes.

The Prisma Platform is designed to become part of your daily sales process and should make investment discussions with your client more straightforward and relevant.

Benefits for you

• Measures the risk tolerance of each client and helps your client fully understand the principles of risk and reward.

• Suggests diversified investment solutions, across asset classes, tailored to each client.

• Helps manage the volatility of your client’s investment by getting them actively involved in the fund selection process.

• Keeps you involved in your client’s investment solution on a ongoing basis and facilitates you in annually reviewing their investments.

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Risk Profiling

5

Assessing your client’s attitude to risk

Understanding how much risk your client is prepared to take is one of the most challenging tasks you face. While personal judgement and a ‘gut-feeling’ have few substitutes in understanding clients, a more scientific approach to risk profiling could be beneficial.

The Prisma Platform has a powerful, yet simple to use ‘risk profiler’ that will help you to accurately assess a client’s attitude to investment risk. 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.

• The Consumer Protection Code 2012 states that you need to consider risk profiling for your clients.*

Understanding the risk profiling process

The Prisma Risk Profiler asks a number of investment related questions and based on the answers to these questions, it categorises your client within a 1 - 7 risk rating.

The questions cover areas from client age and investment time horizon, through to a client’s ability to tolerate financial loss and their attitude to investment risk. While the questions are intended to be easy to answer, the results they produce are scientifically based.

Each response has a score that is added to calculate a final risk rating for the client. The risk rating is ranked into the Zurich Life 1 - 7 risk profile categories. The 1 - 7 risk profile scale adopted by Zurich Life is based on the industry standard.

* Source: Consumer Protection Code 2012, section 5.19.“Prior to providing or arranging a product or service, a regulated entity must prepare a written statement...” which “...must also include an outline of the following, where relevant: iv) how the risk profile of the product is aligned with the consumer’s attitude to risk; and...”

Risk Rating

Lower Higher

3 4 5 6 71 2

It is important to note that risk profiling is not intended to replace your investment advice or recommendations.

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Safety check for you and your clients

Unlike other risk profilers available in the market, Prisma has built-in safety checks. When a client’s answers potentially contradict each other, Prisma will highlight these questions and provide you with an opportunity to bring your personal expertise and judgement to the fore. This extra safety feature will enable you to discuss the contradictions with your client and agree a more accurate risk rating before discussing investment options.

Zurich Life’s seven risk profile categories

Lower risk

If your clients are ‘very low risk’ investors, they are not willing to accept any significant risks with their money, accepting the prospect of low returns to achieve this.

If your clients are ‘low risk’ investors, they are likely to accept limited risks with their money and will want to try to avoid large fluctuations in the value of their investment, accepting the prospect of more modest returns to achieve this.

If your clients are ‘low to medium risk’ investors, they are likely to accept some risk in return for the potential of higher investment gains over the long-term. They want to try to avoid large fluctuations in the value of their investment, but accept there will be some fluctuation, particularly over the short- term.

If your clients are ‘medium risk’ investors, they are likely to accept significant risk in return for the potential of good investment gains over the long-term. They accept there will be significant fluctuations in the value of their investment, particularly over the short-term. However, they will want to limit the amount of their money held in more risky investments.

If your clients are ‘medium to high risk’ investors, they are likely to understand that the value of their investment can go down and up sharply with the potential for greater returns over the long-term.

If your clients are ‘high risk’ investors, they are likely to aim for high possible returns and accept higher levels of risk, recognising that the value of their investment may fluctuate very sharply, particularly over the short-term.

If your clients are ‘very high risk’ investors, they are likely to aim for the highest possible returns and accept the highest levels of risk, recognising that the value of their investment may fluctuate very widely, particularly over the short-term.

Higher risk

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Diversification: Core & Satellite Approach

Diversification is essential

Diversification is essential in providing investment solutions to your clients. It is the simple process of spreading a client’s investment portfolio across a range of different types of assets such as equities, bonds, property, alternatives and cash, to optimise the risk and reward trade-off. Diversification is potentially the most effective way of addressing investment risk and volatility, and it is on this principle that the Prisma Platform is built.

A ‘core’ & ‘satellite’ approach

Zurich Life is recognised in the industry as Ireland’s leading investment manager.* The Prisma Platform gives you and your clients access to all the leading investment funds in the Zurich Life range. We believe that these funds will form the core of any investment solution for your client.

At Zurich Life, we have always complemented our expertise in investment management with external specialists. Threadneedle and BlackRock have been part of our investment offering for a number of years. However, to support full portfolio diversification and to complete the asset class picture, we have added a range of new satellite funds from some of the world’s leading fund managers.

These funds have been selected using the expertise of Zurich’s Global Fund Desk with the new funds recognised as being amongst the best in their asset class category. These new funds include options in:

• Bonds (corporate, government and inflation-linked);

• Absolute Return;

• Property; and

• Emerging Markets (equity and debt).

They are a strong complement to the strengths of Zurich Life. Of course, some clients may wish to only invest in a specific asset class or fund and that option is also available.

* Source: LIMRA Broker Attitude Study 2012; IBA Service Excellence Survey 2011.

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Prisma: Core & Satellite Specialists

Equity

Commodity

Bond

Cash

Absolute Return

Managed

BondSpecialists

Absolute Return

Specialists

CommoditySpecialist

Property

EquitySpecialists

PropertySpecialist

External fund managers provide specialist insight and expertise where exposure to ‘satellite’ asset classes is required.

Zurich Life is the ‘core’ to Prisma’s portfolio construction with expertise across the main asset classes.

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Prisma Portfolio Builder: Platform Solutions

Once you have assessed your client’s attitude to risk using the Prisma Risk Profiler, you will be provided with access to the fund solutions you need through a sophisticated and intuitive ‘portfolio builder’.

The Prisma Portfolio Builder will help guide you and your client to the most suitable investment solutions matching their risk profile. It provides options from simple, actively managed funds to bespoke solutions that you can create specifically for your client.

The Prisma Portfolio Builder offers you up to three distinct routes.

• Prisma Tailored Portfolios

• Prisma Select Portfolios

• Prisma Managed Portfolios

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Platform SolutionsPrisma Tailored

A bespoke solution for your clientThe Prisma Portfolio Builder allows 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, Prisma will provide you with the necessary tools and building blocks to create that solution. From simple single fund solutions through to fully diversified portfolios, Prisma can deliver.

Choose from an extensive range of investment funds and asset classes

Zurich Life offers a comprehensive range of asset classes, from simple cash funds through to regional and concentrated investment funds (see page 13 for a list of funds available).

As risk management should be at the heart of all investment solutions, we have risk rated the funds available on the Prisma Platform.

Match risk profiles to portfolio volatility

When you use the Prisma Tailored Portfolio 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 so that the total equals 100%. Prisma 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.

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Asset split of portfolio

Risk Profile of portfolio

Volatility of portfolio

Client portfolio, built using up to ten funds

How do we calculate the volatility of a portfolio?

The risk rating of each fund is calculated by looking at the volatility of its returns over a five-year period. The volatility calculated in this way is compared to a scale of 1 to 7 (1 is the point with lowest risk on the scale and 7 is the point with highest risk). This risk rating methodology is based on guidelines from the Committee of European Securities Regulators (CESR) for calculating and communicating a risk rating. Where a full five-year history for a fund does not exist, a proxy may be used in the calculation of the risk rating. This proxy is a representative investment which may be expected to have similar volatility to the fund. The returns of the proxy are used for the time periods where a fund’s data does not exist. The risk rating of a portfolio is calculated using a similar approach. The historic returns of the chosen portfolio are simulated over a five-year period. These returns are then used to calculate the volatility of the portfolio. This is then compared to the 1 to 7 risk rating scale. Calculating the risk rating by simulating historic portfolio returns means that the correlations between assets are taken into account and the benefit of diversification can be shown.

The volatility range for each risk profile

The table below shows the volatility range that the Prisma Platform uses when matching a fund or portfolio to a client risk profile.

Risk ProfileVolatility Range

From To

1 0% <0.5%

2 0.5% <2%

3 2% <5%

4 5% <10%

5 10% <15%

6 15% <25%

7 25% +

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The Prisma Platform range of funds - September 2012

Prisma provides an extensive range of funds, from a world-class line-up of fund managers.

RiskRating

Fund Name

Asset Class

Investment Style

Fund Manager

Secure Cash Active Zurich Life

Variable Rate Deposit (Series 3) Cash Passive Zurich Life

Deposit Plus (Series 2) Cash Passive Zurich Life

German Government Bond 2013 Bonds Passive Zurich Life

SuperCAPP Managed Active Zurich Life

Global Corporate Bond (JP Morgan) Bonds Active JP Morgan

Global Government Bond (JP Morgan) Bonds Active JP Morgan

Income Opportunity (JP Morgan) Absolute Return Active JP Morgan

Cautiously Managed Managed Active Zurich Life

Active Fixed Income Bonds Active Zurich Life

Inflation-linked Bond Bonds Passive Zurich Life

Long Bond Bonds Active Zurich Life

Global Real Return (PIMCO) Bonds Active PIMCO

Dynamic Diversified Growth (BlackRock) Diversified Assets Active BlackRock

Diversified Assets Diversified Assets Active Zurich Life

Active Asset Allocation Diversified Assets Active Zurich Life

Balanced Managed Active Zurich Life

Emerging Local Currency Debt (Pictet) Bonds Active Pictet

Performance Managed Active Zurich Life

Dynamic Managed Active Zurich Life

Irish Government Bond 2016 Bonds Passive Zurich Life

Gold Commodities Passive Zurich Life

Earth Resources Commodities Passive Zurich Life

Global Commodities Commodities Passive Zurich Life

5 Star 5 Global Equity Active Zurich Life

5 Star 5 Americas Equity Active Zurich Life

5 Star 5 Asia Pacific Equity Active Zurich Life

5 Star 5 Europe Equity Active Zurich Life

International Equity Equity Active Zurich Life

Dividend Growth Equity Active Zurich Life

TopTech 100 Equity Passive Zurich Life

CommoditiesPlus Strategy (PIMCO) Commodities Active PIMCO

Europe ex-UK Index (BlackRock) Equity Passive BlackRock

Global Select (Threadneedle) Equity Active Threadneedle

American Select (Threadneedle) Equity Active Threadneedle

European Select (Threadneedle) Equity Active Threadneedle

Japan Index (BlackRock) Equity Passive BlackRock

Emerging Markets Equity (Aberdeen) Equity Active Aberdeen

Green Resources Commodities Passive Zurich Life

Irish Equity Equity Active Zurich Life

Eurozone Equity Equity Active Zurich Life

Asia Pacific Equity Equity Active Zurich Life

India Equity Equity Passive Zurich Life

European (Ex-UK) Property Property Passive Zurich Life

Australasia Property Property Passive Zurich Life

Horizon Global Property Equities (Henderson) Property Active Henderson

UK Index (BlackRock) Equity Passive BlackRock

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Platform SolutionsPrisma Select

Suggested diversified portfolios suitable for risk profiles 3 - 6

Prisma Select consists of four portfolios. These portfolios are made up of carefully selected funds from a wide variety of asset classes including: equities, bonds, alternatives, property and cash. They can potentially provide your clients with fully diversified solutions and consist of funds managed by Zurich Life and our chosen external managers.

The Prisma Select Portfolios are constructed by Zurich Life on a quarterly basis and will be published on www.zurichlife.ie/brokercentre. Each portfolio is volatility rated so that it matches the corresponding risk profiles 3 - 6.

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Active Fixed

Income

International Equity

Global Real Return

(PIMCO)

Prisma Select 4 - Risk Profile 4

Global Corporate Bond

(JPM)

Income Opportunity (JPM)

Global Government Bond

(JPM)

Emerging Local Currency Debt

(Pictet)

Active Fixed

Income

SuperCAPP

Global Real Return

(PIMCO)

Prisma Select 3 - Risk Profile 3

Global Corporate Bond

(JPM)

Income Opportunity (JPM)

Global Government Bond (JPM)

Active Fixed Income

Global Real Return

(PIMCO)

Prisma Select 5 - Risk Profile 5

Emerging Markets Equity

(Aberdeen)

Commodities Plus Strategy (PIMCO)

International Equity

International Equity

Horizon Global Property Equities

(Henderson)

Prisma Select 6 - Risk Profile 6

Global Emerging Markets Equity

(Aberdeen)

Commodities Plus Strategy (PIMCO)

6%7%

6%

6%

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40%

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30%

7% 15%6%

6%

6%

60%

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6%6%

75%

Emerging Local Currency Debt

(Pictet)

Emerging Local Currency Debt

(Pictet)

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Platform SolutionsPrisma Managed

Suggested simple managed solutions suitable for your client

Prisma Managed suggests solutions constructed of actively managed Zurich Life funds solutions, matching risk profiles 3 - 6. The Prisma Managed Portfolios are constructed by Zurich Life on a quarterly basis and will be published on www.zurichlife.ie/brokercentre.

Prisma Managed 3 100% SuperCAPP

Prisma Managed 4 100% Cautiously Managed

Prisma Managed 575% Balanced 25% Cautiously Managed

Prisma Managed 6 100% Dynamic

Warning: Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. These funds may be affected by changes in currency exchange rates.

Aberdeen Unit Trust Managers Limited and Aberdeen Asset Managers Limited are authorised and regulated by the Financial Services Authority in the UK.

BlackRock Investment Management (UK) Limited is authorised and regulated by the Financial Services Authority in the UK.

Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355), Henderson Fund Management Limited (reg. no. 2607112), Henderson Investment Funds Limited (reg. no. 2678531), Henderson Investment Management Limited (reg. no. 1795354), Henderson Alternative Investment Advisor Limited (reg. no. 962757), Henderson Equity Partners Limited (reg. no.2606646), Gartmore Investment Limited (reg. no. 1508030), Gartmore Fund Managers Limited (reg. no. 1137353), (each incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Services Authority to provide investment products and services.

JPMorgan Asset Management Marketing Limited is authorised and regulated by the Financial Services Authority in the UK.

Pictet North America S.A.’s representative office in the UK is an appointed representative of Pictet Investment Company Limited, authorised and regulated by the Financial Services Authority in the UK.

PIMCO Europe Ltd, PIMCO Europe Ltd Munich Branch, PIMCO Europe Ltd Amsterdam Branch and PIMCO Europe Ltd - Italy are authorised and regulated by the Financial Services Authority in the UK.

Threadneedle Investment Services Limited is authorised and regulated by the Financial Services Authority in the UK.

Zurich Life Assurance plc

Zurich House, Frascati Road, Blackrock, Co. Dublin, Ireland.

Telephone: 01 283 1301 Fax: 01 283 1578 Website: www.zurichlife.ie

Zurich Life Assurance plc is regulated by the Central Bank of Ireland.

Intended for distribution within the Republic of Ireland.Prin

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