Friday, December 4, 2009

Zurich Life (Eagle Star) Balanced Fund

The 1st of November this year marked the 20th anniversary of the Zurich Life (Eagle Star) Balanced Fund. This fund would have an indicative Global Equity exposure of between 50% - 75%, with the balance being held in Bonds and Cash. It's general categorization in terms of Risk/Reward would be aimed at those who are 'Medium' risk takers.

The Balanced Fund did pretty well over this period: so rather that just say that the total gross performance was 632%, I wanted to provide a pension example using a monetary value.

If you invested €5,000 on 01/11/1989 and then paid €100 per month up until 31/10/2009, your total contributions would have amounted to €29,000. The value of your pension fund at 31/10/2009 would have been €84,028*. For an initial contribution of €10,000 and a regular monthly contribution of €250, the final fund value would have been €193,651*.

These figure represent a net annual compound return of approximately 8%.

Disclaimer: My only motive in doing this exercise is to 'translate' the gross 632% into an indicative annual net return.

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

* Assumes a single charge of 1% per annum on the value of the fund ie. that no other charges apply to the product.

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