Acorn Life Cautious Select

The Cautious Select Fund is invested mainly in fixed income assets issued by governments, agencies, supranationals and corporates. It also holds smaller amounts in other asset types such as equities and cash. This means it is designed to be more conservative than funds with a larger share in shares.

The Cautious Select Fund is potentially suitable for investors who are comfortable with low levels of growth and who have little tolerance for significant falls in value. Acorn Life classifies the Cautious Select Fund as a low risk fund. It is aimed at investors with a short to medium-term minimum investment horizon.

The Cautious Select Fund uses a passive investment style and its portfolio is implemented through an arrangement between Acorn Life DAC and Mercer Global Investments Europe Limited. Mercer selects and monitors third-party investment managers as part of this arrangement. The Cautious Select Fund is managed by Mercer Global Investments Europe Limited, which is regulated by the Central Bank of Ireland.

The main risks of the Cautious Select Fund are market risk, currency risk and inflation risk. Market risk means the fund’s value can rise or fall as financial markets move. Currency risk means exchange rate changes can affect returns when investments are held in different currencies, while inflation risk means rising prices can reduce the real value of returns over time.