Zurich Australia has announced the latest addition to its suite of investment funds with the introduction of the Zurich Investments Global Equity Income Fund.
The Fund is designed to provide investors access to global equity markets, with enhanced levels of income and reduced downside risk.
Zurich General Manager Retail Life and Investments, Mr Philip Kewin, said there is increasing demand for income generating investments, particularly amongst older investors, but that investor appetite for risk remains subdued.
“At Zurich, we provide a suite of ‘best of breed’ investments. Our model of partnering with selected fund managers gives us agility and speed to market, so advisers and their clients can access the right products at the right time,” he said.
The Zurich Investments Global Equity Income Fund is comprised of a portfolio of 40income-producing, international stocks across a range of sectors and geographies. The Manager utilises innovative options and currency strategies to help reduce downside risk.
“We believe, given the low-growth environment in Australia and the relative cheapness of international stocks, this is the right time to be accessing global equity markets. This fund provides that exposure to growth opportunities, but also employs strategies to reduce risk and provide a healthy level of income, well in excess of cash rates,” said Mr Kewin.
A recent survey of advisers conducted by Zurich indicated a growing demand for equity exposure but low expectations for overall growth in local markets.
Around 70 percent of advisers indicated that they would be moving clients’ cash to equities in the next six to 12 months, with 25 percent favouring international equities. Almost 45 percent are expecting the Australianshare market to provide single-digit returns over the next 12 months and just nine percent expecting double-digit growth.
Mr Kewin said a global approach provided access to a bigger universe of stocks and hence, greater opportunity for diversification and growth.
“With this fund, investors can access a far bigger range of sectors and businesses than are available with a purely local focus. Companies like Google and eBay are part of the current global growth story and offer real diversification from the resources and finance stocks that dominate the Australian market.”
Mr Kewin said Zurich partnered with PM Capital after a far-reaching market review revealed a unique opportunity.
“We had a very strong idea about the type of fund and type of manager we were after to bring this proposition to market. We were already aware of the team at PM Capital due to their innovative investment approach. It was fortuitous therefore that they were managing a relatively new fund that fitted our needs perfectly,” he said.
“So rather than developing a new fund, we offered to take over as the Responsible Entity for that fund, launching it from 9 July2012 as the Zurich Investments Global Equity Income Fund, “said Mr Kewin.
The Zurich Investments Global Equity Income Fund is available to investors with a minimum investment of $5,000.
10 July 2012