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PRSA/AVC: decline of c. 10% in 2018

  • 27-03-2019 7:16pm
    #1
    gaiscioch
    Registered Users, Registered Users 2 Posts: 1,534 ✭✭✭


    I've two Zurich PRSA contracts, the first of which is active (1% management charge), the second of which was transferred over from Irish Life as I was advised that Zurich gives better returns and it's "sitting" there with Zurich now (.75% management charge).

    Today I received the report for both contracts until 31 December 2018. To my surprise, the active one lost 10.7% of its value; the inactive one lost 8.6% of its value.

    Both are in a Prisma (Risk Level 6) fund, and the 'Unit Type' is 'Accumulator'. As I haven't followed stock markets - I think I'm going to start now- other than beyond the news headlines, I thought the market was generally still doing well so I'm very surprised at this.

    Would anybody have any insight or advice on this level of decline; is it normal or unusual? Thanks.


Comments

  • #2
    Ace2007
    Registered Users, Registered Users 2 Posts: 19,958 ✭✭✭✭Ace2007


    gaiscioch wrote: »
    I've two Zurich PRSA contracts, the first of which is active (1% management charge), the second of which was transferred over from Irish Life as I was advised that Zurich gives better returns and it's "sitting" there with Zurich now (.75% management charge).

    Today I received the report for both contracts until 31 December 2018. To my surprise, the active one lost 10.7% of its value; the inactive one lost 8.6% of its value.

    Both are in a Prisma (Risk Level 6) fund, and the 'Unit Type' is 'Accumulator'. As I haven't followed stock markets - I think I'm going to start now- other than beyond the news headlines, I thought the market was generally still doing well so I'm very surprised at this.

    Would anybody have any insight or advice on this level of decline; is it normal or unusual? Thanks.
    The funds have more than likely rebounded and could be up now, December was a bad month in the markets. Best not to be paying attention to the markets and let it ride out - assuming that your not need retirement.


  • #3
    hmmm
    Registered Users, Registered Users 2 Posts: 11,205 ✭✭✭✭hmmm


    If you don't know what you're doing, best like Ace says not to pay attention I'd say - otherwise you might feel compelled to "do" something. Stock markets are the only thing I know where people look to sell as things get cheaper, and try to buy as they get dearer.

    The markets fell around 10% in December, but for most people they'll have made it back at the start of the year. Anyone who sold in December in a panic is still sitting on a 10% loss.


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,626 ✭✭✭✭coylemj


    hmmm wrote: »
    The markets fell around 10% in December, but for most people they'll have made it back at the start of the year. Anyone who sold in December in a panic is still sitting on a 10% loss.

    +1 Zurich's Prisma 6 fund is currently 91% equities so there will be volatility, reflecting what's happening on the stock markets.

    But as poster hmmm (above) says, the worst thing you can do is panic and move into more cautious funds, the stock markets always bounce back and you'll miss the rebound.

    Prisma 6 bid price at the end of December 2018 was 1.265, today (Mar. 28th), it's 1.435, a gain of 13.44% in just three months.


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