INVESTMENT CONSULTING & RESEARCH
Zurich Collection »
Research conducted by Square Mile
For intermediary use only – not for use with your clients
Introducing the Zurich Collection
The Zurich Collection makes your life easier by helping
you to quickly and simply identify potentially suitable
investments based on your clients’ goals for their money.
The funds within each of these outcomes have been
independently selected by Square Mile and include mutual
funds, Exchange Traded Funds and Investment Trusts.
To achieve this Zurich have defined four outcomes to cover
the range of goals your clients may have – these are:
• Capital Accumulation
• Income Provision
• Capital Preservation
• Inflation Protection
The Zurich Collection is aimed at those advisers looking
to select from an independently selected range of funds
including mutual funds, Exchange Traded Funds and
Investment Trusts.
Find out more about Square Mile »
View the investment outcome groupings »
For sample reasons why paragraphs to use in emails and letters to your clients »
This document is based on independent investment research commissioned by Zurich but undertaken by Square Mile.
Zurich does not endorse these funds or fund managers and does not perform additional diligence work on the funds Square
Mile select. It is the responsibility of advisers to research the funds before making any recommendations to customers.
Investments into Exchange Traded Funds (ETFs) and Investment Trusts (ITs) are made via our nominated stockbroker,
and we deduct a charge for each exchange-traded asset bought or sold on your behalf by them.
About Square Mile
Square Mile aims to ensure that investors receive appropriate solutions by working with financial advisers and institutions and providing
a high level of expertise throughout the process of building investment strategies. This includes:
• customised strategic asset allocation
• tactical asset allocation
• qualitative fund manager research and selection
• fund blending
• portfolio construction.
Meet the Square Mile executive team
Richard Romer-Lee
David Pickles
Mark James
Jason Broomer
Victoria Hasler
Jamie Farquhar
Investment Outcome Groupings
Capital Accumulation
Suitable for investors who are building up their savings
Investors’ time horizons may vary from the medium to long term. Risk suitability
should be assessed based on the investors’ objectives, existing provision, time
horizon and personal risk preference. The funds listed in this Outcome Grouping
have aims and objectives consistent with the investors’ requirement to grow
their capital.
The funds are classified into stand alone solutions or component funds.
The latter can be blended into a multi-fund portfolio on behalf of the investor.
View the Capital Accumulation funds »
Income Provision
Suitable for investors who are predominantly seeking investment
income to replace work based income to maintain their lifestyle
Risk suitability should be assessed based on the investors’ objectives, existing
provision, time horizon and personal risk preference. This Outcome Grouping
can be classified into three subgroupings:
• High income where income yield is the primary focus and capital preservation/
growth is a secondary consideration.
• Income growth where a combination of income and capital growth
is required.
• Target income where a specific income is required and capital preservation/
growth is a secondary consideration.
The funds are classified into stand alone solutions or component funds which can
be blended into a multi-fund portfolio on behalf of the investor.
View the Income Provision funds »
Capital Preservation
Funds in this Outcome Grouping are not suitable for investors
seeking total capital security
These funds are suitable for investors who seek to preserve their capital but they
are prepared to place their capital at risk and seek some capital appreciation and/or
income. Many of the managers of these funds aim to invest with an absolute
return mindset. Risk suitability should be assessed based on the investors’
objectives, existing provision, time horizon and personal risk preference.
Funds in this classification Outcome Grouping are either lower risk fixed income
and multi-asset funds, and/or funds that make extensive use of hedging to
reduce the likelihood of capital loss. Many of the funds in this Grouping employ
complex derivative strategies and may only be suitable for sophisticated investors.
The funds in this Grouping may best be considered as component funds which
can be blended into a multi-fund portfolio on behalf of the investor.
View the Capital Preservation funds »
Inflation Protection
Suitable for investors who seek to maintain the real value of their
capital and income
Risk suitability should be assessed based on the investors’ objectives, existing
provision, time horizon and personal risk preference. Note that national inflation
measures such as Retail Price Index (RPI) and Consumer Price Index (CPI) may not
match investors’ personal expenditure inflation rates.
This Outcome Grouping has funds with inflation objectives with either explicit
index linked aims and/or invest into assets such as property and equities which
may retain their real value over a protracted period.
The funds are classified into stand alone solutions or component funds which can
be blended into a multi-fund portfolio on behalf of the investor.
View the Inflation Protection funds »
Capital Accumulation funds
Click on the fund names below to read Square Mile’s view on each individual fund.
Fund provider and fund name
Fund type
SRRI
Asset class
Square Mile
Rating
ISINs available on Zurich
platform (Accumulation
share classes)
Active funds
Open ended mutual funds
Net fund
Fidelity Strategic Bond
Component Solution
3
Fixed Income
AA
GB00BCRWZS59 »
Kames Strategic Bond
Component Solution
3
Fixed Income
AA
GB00B3ZLQW29
Investec Cautious Managed
Single Solution
4
Mixed Assets
AA
GB00BD5J0R90
Jupiter Merlin Balanced
Single Solution
4
Mixed Assets
AAA
GB00B4351D99
Jupiter Merlin Income
Single Solution
4
Mixed Assets
AAA
GB00B4N2L746
Artemis Income
Component Solution
5
Equity
AA
GB00B2PLJH12
AXA Framlington Managed Balanced
Single Solution
5
Mixed Assets
A
GB00B7MMHK16
AXA Framlington UK Select Opportunities
Component Solution
5
Equity
AAA
GB00B7FD4C20
Fundsmith Equity
Component Solution
5
Equity
AA
GB00B41YBW71
Old Mutual UK Smaller Companies
Component Solution
5
Equity
AA
GB00BHBX8S02
Stewart Investors Asia Pacific Leaders
Component Solution
5
Equity
AAA
GB0033874768
Jupiter European
Component Solution
6
Equity
AAA
GB00B5STJW84
Lazard Emerging Markets
Component Solution
6
Equity
AA
GB00B24F1G74
MAN GLG Japan Core Alpha
Component Solution
6
Equity
AAA
GB00B0119B50
Old Mutual UK Alpha
Component Solution
6
Equity
AA
GB00B946BX62
Capital Accumulation funds page 2 »
Note: The synthetic risk reward indicators (SRRI) are taken from the funds’ Key Investor Information Document (KIID) where available. The higher the number the greater the potential reward but
the greater the risk of losing money. The SRRI is calculated using historic volatility data, using a methodology agreed across the EU. The seven category scale is non linear. The SRRI can change
over time and it may not be a reliable indicator for the future. The data listed will be updated on quarterly basis and you should refer to the fund’s KIID for the current SRRI. The KIIDs are available
through the Zurich Intermediary Platform. ‘Single Solution’ funds tend to be invested using diversified strategies which may be suitable as a stand alone solution to meet the customer requirements.
They could also be used as core components of a wider portfolio. ‘Component Solution’ funds tend to be more focused and they may be more suitable for use within a wider portfolio.
Information provided by Square Mile, correct as at 5 May 2016.
Capital Accumulation funds
Click on the fund names below to read Square Mile’s view on each individual fund.
Fund provider and fund name
Fund type
SRRI
Asset class
Square Mile
Rating
Investment Trusts
ISINs available on Zurich
platform (Accumulation
share classes)
Net fund
Finsbury Growth and Income
Component Solution
n/a
Equity
R
GB0007816068
Temple Bar
Component Solution
n/a
Equity
R
GB0008825324
Passive funds
Open ended mutual funds
Net fund
BlackRock UK Equity Tracker
Component Solution
5
Equity
R
GB00BPFJDB84
BlackRock US Equity Tracker
Component Solution
5
Equity
R
GB00B5VRGY09
BlackRock Continental Europe Equity Tracker
Component Solution
6
Equity
R
GB00BJL5BS14
BlackRock Emerging Markets Equity Tracker
Component Solution
6
Equity
R
GB00BJL5BW59
BlackRock Japan Equity Tracker
Component Solution
6
Equity
R
GB00BJL5BZ80
BlackRock Pacific Ex Japan Equity Tracker
Component Solution
6
Equity
R
GB00BJL5C004
Vanguard FTSE Developed World Ex UK Eq Ind
Component Solution
6
Equity
R
GB00B59G4Q73
Exchange Traded Funds (ETFs)
Net fund
iShares MSCI UK UCITS ETF
Component Solution
5
Equity
N/A
IE00B539F030
Vanguard FTSE All-World UCITS ETF
Component Solution
5
Equity
N/A
IE00B3RBWM25
Vanguard S&P 500 UCITS ETF
Component Solution
5
Equity
N/A
IE00B3XXRP09
« Capital Accumulation funds page 1
Note: The synthetic risk reward indicators (SRRI) are taken from the funds’ Key Investor Information Document (KIID) where available. The higher the number the greater the potential reward but
the greater the risk of losing money. The SRRI is calculated using historic volatility data, using a methodology agreed across the EU. The seven category scale is non linear. The SRRI can change
over time and it may not be a reliable indicator for the future. The data listed will be updated on quarterly basis and you should refer to the fund’s KIID for the current SRRI. The KIIDs are available
through the Zurich Intermediary Platform. ‘Single Solution’ funds tend to be invested using diversified strategies which may be suitable as a stand alone solution to meet the customer requirements.
They could also be used as core components of a wider portfolio. ‘Component Solution’ funds tend to be more focused and they may be more suitable for use within a wider portfolio.
Information provided by Square Mile, correct as at 5 May 2016.
Income Provision funds
Click on the fund names below to read Square Mile’s view on each individual fund.
Fund provider and fund name
Fund type
Indicative
SRRI Asset Class
Yield
Square
Mile
Rating
Income frequency
ISINs available on
Zurich platform
(Income share classes)
High Income
Open ended mutual funds
Artemis High Income
Net fund
Component Solution
3
Mixed Assets
6.3%
A
Pays quarterly, Apr, Jul, Oct, Jan
GB00B2PLJN71
Fidelity MoneyBuilder Income
Component Solution
3
Fixed Income
3.8%
AAA
Pays monthly on the 1st of each month
GB00B3Z9PT62 »
Henderson Preference & Bond
Component Solution
3
Fixed Income
4.9%
A
Pays quarterly, Aug, Nov, Feb, Mar
GB0007651721 »
Threadneedle High Yield Bond
Component Solution
3
Fixed Income
6.0%
A
Pays monthly on the 4th of each month
GB00B7SGDT88 »
Fidelity Enhanced Income
Component Solution
5
Equity
6.6%
A
Pays quarterly
GB00BYSYZP12
Income & Growth
Open ended mutual funds
Net fund
GB00B8N45436 »
Invesco Perpetual Distribution
Single Solution
4
Mixed Assets
5.1%
AA
Pays each month end
Premier Multi-Asset Distribution
Single Solution
4
Mixed Assets
4.3%
AA
Pays quarterly Mar, Jun, Sep, Dec
Neptune Income
Component Solution
5
Equity
4.8%
A
Pays income twice yearly, July and January
GB00B8L7B355
Newton Global Income
Component Solution
5
Equity
3.5%
A
Pays quarterly, Feb, May, Aug, Nov
GB00B8BQG486
Royal London UK Equity Income
Component Solution
6
Equity
4.3%
A
Pays quarterly Mar, Jun, Sep, Dec
GB00B3M9JJ78
GB00B40RNW10
Target Income
Open ended mutual funds
Net fund
Schroder Multi Manager Diversity Income
Single Solution
4
Mixed Assets
3.4%
A
Schroder Income Maximizer
Component Solution
5
Equity
7.0%
A
Pays quarterly Mar, Jun, Sep, Dec
GB00B418R656
Pays quarterly Mar, Jun, Sep, Dec
GB00BDD2F083
Investment Trusts
Net fund
NB Global Floating Rate Income
Component Solution
n/a
Floating Rate
4.3%
R
Pays income quarterly
GG00B3KX4Q34
TwentyFour Income Fund
Component Solution
n/a
Floating Rate
8.6%
R
Pays income quarterly
GG00B90J5Z95
Note: The synthetic risk reward indicators (SRRI) are taken from the funds’ Key Investor Information Document (KIID) where available. The higher the number the greater the potential reward but
the greater the risk of losing money. The SRRI is calculated using historic volatility data, using a methodology agreed across the EU. The seven category scale is non linear. The SRRI can change
over time and it may not be a reliable indicator for the future. The data listed will be updated on quarterly basis and you should refer to the fund’s KIID for the current SRRI. The KIIDs are available
through the Zurich Intermediary Platform. Indicative yield is an indication of the annual yield and this will be updated quarterly. For a precise measure of the yield you should refer to the fund fact
sheet. ‘Single Solution’ funds tend to be invested using diversified strategies which may be suitable as a stand alone solution to meet the customer requirements. They could also be used as core
components of a wider portfolio. ‘Component Solution’ funds tend to be more focused and they may be more suitable for use within a wider portfolio.
*The fund is changing to PAIF structure in May 2016 and the Feeder Fund will become available on the Zurich Intermediary Platform.
Information provided by Square Mile, correct as at 5 May 2016.
Capital Preservation funds
Click on the fund names below to read Square Mile’s view on each individual fund.
Fund provider and fund name
Fund type
SRRI
Asset Class
Square Mile
Rating
ISINs available on
Zurich platform
(Accumulation share classes)
Traditional Strategies
Open ended mutual funds
Net fund
AXA Sterling Credit Short Duration Bond
Single Solution
2
Fixed Income
A
GB00B5VLK178 »
Newton Real Return
Single Solution
4
Mixed Assets
AA
GB00B8GG4B61
Sophisticated Strategies
Open ended mutual funds
Net fund
Kames UK Equity Absolute Return
Component Solution
3
Long/short
A
GB00B4XS8040
JP Morgan Strategic Bond
Single Solution
3
Fixed Income
A
GB00B3RJBC99
Standard Life GARS
Single Solution
4
Mixed Assets
A
GB00B7K3T226
Schroder European Absolute Target
Component Solution
7
Long/short
A
GB00B39VWZ39
Note: The synthetic risk reward indicators (SRRI) are taken from the funds’ Key Investor Information Document (KIID) where available. The higher the number the greater the potential reward but
the greater the risk of losing money. The SRRI is calculated using historic volatility data, using a methodology agreed across the EU. The seven category scale is non linear. The SRRI can change
over time and it may not be a reliable indicator for the future. The data listed will be updated on quarterly basis and you should refer to the fund’s KIID for the current SRRI. The KIIDs are available
through the Zurich Intermediary Platform. ‘Single Solution’ funds tend to be invested using diversified strategies which may be suitable as a stand alone solution to meet the customer requirements.
They could also be used as core components of a wider portfolio. ‘Component Solution’ funds tend to be more focused and they may be more suitable for use within a wider portfolio.
Information provided by Square Mile, correct as at 5 May 2016.
Inflation Protection funds
Click on the fund names below to read Square Mile’s view on each individual fund.
Fund provider and fund name
Fund type
SRRI
Asset class
Square Mile
Rating
Open ended mutual funds
ISINs available on Zurich
platform (Accumulation
share classes)
Net fund
M&G UK Inflation Linked Corporate Bond
Component Solution
3
Fixed Income
A
GB00B460GC50
Schroder Multi Manager Diversity
Single Solution
3
Mixed Assets
AA
GB00B60CZD52
Standard Life Global Index Linked Bond
Component Solution
3
Fixed Income
A
GB00B7C0H946
Twenty Four Monument Bond
Component
3
Fixed Income
AA
GB00B3V5V897 »
AXA Distribution
Single Solution
4
Mixed Assets
Suspended A
GB0006160104
Royal London Index Linked
Component or possibly single solution
4
Fixed Income
A
GB00B8DDWW71
Component or possibly single solution
5
Fixed income
R
GB00BPFJDG30
Passive funds
BlackRock Index Linked Gilt Tracker
Note: The synthetic risk reward indicators (SRRI) are taken from the funds’ Key Investor Information Document (KIID) where available. The higher the number the greater the potential reward but
the greater the risk of losing money. The SRRI is calculated using historic volatility data, using a methodology agreed across the EU. The seven category scale is non linear. The SRRI can change
over time and it may not be a reliable indicator for the future. The data listed will be updated on quarterly basis and you should refer to the fund’s KIID for the current SRRI. The KIIDs are available
through the Zurich Intermediary Platform. ‘Single Solution’ funds tend to be invested using diversified strategies which may be suitable as a stand alone solution to meet the customer requirements.
They could also be used as core components of a wider portfolio. ‘Component Solution’ funds tend to be more focused and they may be more suitable for use within a wider portfolio.
Information provided by Square Mile, correct as at 5 May 2016.
For use by professional financial advisers only.
No other person should rely on, or act on any information in this document
when making an investment decision. This document has not been approved
for use with clients.
The Zurich Intermediary Platform is brought to you by Sterling ISA Managers Limited.
Zurich is a trading name of Sterling ISA Managers Limited.
Sterling ISA Managers Limited, authorised and regulated by the Financial Conduct
Authority. Registered in England and Wales under company number 02395416.
Registered Office: The Grange, Bishops Cleeve, Cheltenham, GL52 8XX.
Square Mile Investment Consulting and Research Limited (Company No. 8791142),
130 Wood Street, London EC2V 6DL
136905.11 (173002491) (07/16) TCL