Discover how Zurich and Columbia Threadneedle successfully use Insight to provide strategic asset allocations, ensuring strong performance across five risk-profiled multi-asset funds. And see why Insight can ensure asset allocations remain highly efficient and deliver maximum expected return.
Zurich operates five risk-profiled multi-asset funds known as the Horizon Fund Range. With three levels of risk management, these funds have a unique investment process. Input from EValue, Columbia Threadneedle and Zurich Investment Services has led to strong performance since the funds' launch in 2014.
The funds aim to achieve a positive investment return for a targeted level of risk by investing in a mixture of asset classes. And to ensure this, it's key to review and change the weightings between these classes in a measured way.
Let's take a look at how our stochastic asset model, Insight, works with Columbia Threadneedle and Zurich to ensure strong performance for these funds.
Insight provides the strategic asset allocations (SAA), which is tactically allocated (TAA) by Columbia Threadneedle's highly-experienced multi-asset team. Then, Zurich Investment Services provide a final layer of high-quality risk management oversight.
As Columbia Threadneedle run the funds and manage them in line with the EValue risk profiles, all advisors need to do is monitor their clients' risk appetite, rather than the funds' level of risk too.
Insight is delivered as a set of scenarios which together show the range and average outcome that history, market conditions and careful modelling lead us to expect.
EValue Strategic Asset Allocation
Every quarter, we update Insight with the latest economic data. Using this updated data, we produce 10,000 future scenarios of how the market might progress from its current position. These revised forecasts let us review and update the asset allocations for each risk profile to ensure they remain efficient, i.e. that they deliver the maximum expected return for the risk budget associated with each Horizon fund.
Zurich Horizon funds asset allocation
Columbia Threadneedle considers our asset allocations and decides on the tactical asset allocations for the Zurich Horizon Multi-Asset funds.
The Columbia Threadneedle Managed Fund team use our asset allocation model, alongside their strategic market views, to help select the most appropriate funds for the Zurich Horizon Multi-Asset funds to hold.
Columbia Threadneedle's independent risk team analyse each of the Zurich Horizon Multi-Asset funds in depth. This will highlight any potential investments that could result in the funds having an undue concentration of risk, and ensure the funds remain within their designated risk profile.
In addition to the above, Zurich undertakes portfolio risk management, to ensure the funds are run in accordance with the fund objectives.
Discover what we did and how it could apply to your business.
We use our sophisticated economic scenario generator, Insight, to produce thousands of potential plausible future market forecasts, starting from today's market conditions. Using these forecasts for combinations of different asset classes, you can construct asset allocations and portfolios with optimised risk-reward characteristics.
This approach to asset allocation is successful for several reasons:
Top ranking!for three funds
Strong performancesince launch in 2014
|2014||2015||2016||2017||FE Crown rating||Charge (OCF)|
Year-end quartile ranking
Source FE Analytics 30th November 2017