AIB Life Euro Corporate Bond

Euro Corporate Bond aims to give investors exposure to the Euro corporate bond market. It does this by investing in another fund that aims to track a sustainable Euro corporate bond index. As a bond fund, it invests in debt issued by companies rather than shares.

Euro Corporate Bond is managed in a passive style by Irish Life Investment Managers. That means it is designed to follow the performance of its benchmark, a sustainable Euro corporate bond index, rather than trying to beat it through active stock or bond selection.

Euro Corporate Bond may suit investors who want bond market exposure with a sustainability focus. The fund is an Article 8 fund under SFDR, meaning it incorporates environmentally friendly or socially responsible investments. That does not mean it is impact-only or risk-free; it still invests in corporate bonds and can lose value.

Euro Corporate Bond has a risk rating of 3, which suggests a lower-to-moderate level of risk relative to many other funds. Because it invests in corporate bonds, investors are exposed to credit risk, which means the companies that issued the bonds could fail to make their payments. Investors should make sure they understand the risks before investing.