Cutting Through the Noise. A Product & Fund Update from Zurich Investments

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2 Cutting Through the Noise A Product & Fund Update from Zurich Investments

3 Three Key Investment Messages 1. Strong, consistent, long-term performance 2. Excellent fund and product range 3. Financial Strength 3

4 Range of Funds Pathway- ESMA rated from 2 through 6 Flagship Managed range for over 26 years: Balanced Performance Dynamic Cautious SuperCAPP International External Partners: Invesco Perpetual Global Targeted Returns 9

5 Investment Product Options First to market with Easy Access Investment Bond Recently increased to 75,000 per household/corporation Excellence in Financial Products Award (PIBA 2015) Competitively structured regular saver product Households have over 60b on deposit-huge opportunity present! Earning 0.21%... Flexibility and transparency across all our investment structures 9

6 Over 25 years of Multi-Asset Expertise Source: Zurich Life 1

7 Investors should hold their nerve 9 Source: JP Morgan

8 Which fund would you prefer your monthly premium in? 9

9 Which fund would you prefer your monthly premium in? 9

10 Cutting Through the Noise A Market Update from Zurich Investments Richard Temperley Head of Investment Development

11 Over 25 years of Multi-Asset Expertise Source: Zurich Life 1

12 Investment Funds Performance Aon Hewitt InVision Survey Category Zurich Fund 2015 Return % Average Fund Return/Index % Multi-Asset Medium Volatility Multi-Asset Medium/High Volatility Multi-Asset High Volatility Cautiously Managed Out/(Under) Performance % Zurich Position/No. of Funds 6.1% 1.7% 4.4% 2 nd /11 Balanced 9.8% 5.9% 3.9% 7 th /33 Performance 10.7% 5.9% 4.8% 2 nd /33 Diversified Asset AAA 4.8% Dynamic 11.7% 8.0% 3.7% 2 nd /5 Global Equity Passive Global Equity International Equity 5 Star 5 Global Indexed Global 10.5% 9.9% 0.6% 10 th / % 9.9% 3.6% 7 th / % 9.9% 0.8% 1st/10 2

13 World Equities ( ) over 10 years 3 Source: Bloomberg

14 VIX Volatility Index 3 Source: Blackrock

15 German 10yr Bund Yield over 10 years 4 Source: Bloomberg

16 Equities V Fixed Income 5 Source: Morgan Stanley Research, RIMES, Bloomberg, March 2015

17 3 rd Longest bull market on record!!! 6

18 Equity Bull Market S&P 500 Bull Markets Since Source: S&P

19 Bull Market s End textbook 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 8

20 Bears are emerging from hibernation. Why? Is something different this time? Negative Global Macro Forces: China slowdown has ripple effect Earnings not that strong Oil price has collapsed Manufacturing PMIs weak Federal Reserve has begun to raise interest rates: Are Central Banks in control? Some key technical indicators are flashing warning signs 9 Source: Citi, Zurich Life

21 Equity Market Valuations Weight P/E EPS YoY % Global North America UK Europe ex- UK Japan Asia ex- Japan Source: Citi, Zurich Life

22 The 3 Investment Ps Philosophy: Active/ Conviction Management Process: Top-Down, Macro-Economic Driven People: Long-standing, Experienced Team Result = Investment Out-performance 11

23 Our People Winner Best Investment Performance 2014 & 2015 Equities David Warren Chief Investment Officer Fixed Income & Treasury Anthony Conroy Associate Director European Equities James McSweeney Senior Fund Manager U.S. Equities Éimear Maloney Associate Director Global Equities Pat Cunningham Senior Fund Manager Asian Equities John McDermott Philip Duggan Investment Manager Senior Fund Manager Fixed Income & Treasury Fixed Income & Treasury Michael Kelly Fund Manager U.K Equities Áine Stafford Equity Analyst U.S Equities Bernard McGrath Fixed Income Portfolio Manager 12

24 Zurich Life Fund Returns Performance to 31 January 2016 Time Period Zurich Life Dynamic Fund Zurich Life Performance Fund Zurich Life Balanced Fund Average Managed Fund 1 year year year year year Source: Financial Express

25 Active Management of Asset Classes (AAA) 16 Source: Zurich Life

26 Asset Class Returns 14

27 AAA & Pathway Funds AUM ( m) 13 Source: Zurich Life

28 From Euphoria to Panic and back again? 9 Source: Credit Suisse

29 Over 25 years of Multi-Asset Expertise 17 Source: Zurich Life

30 Thank you 30