AIB Life Euro Long Dated Bond

Euro Long Dated Bond aims to provide passive exposure to investment grade Euro government bonds with a duration of at least 15 years. In practice, that means the fund invests in long-term government debt from euro-area countries such as France, Germany, Italy, Spain and the Netherlands. Because it is passive, Euro Long Dated Bond seeks to track the market rather than actively pick bonds.

Euro Long Dated Bond may be suitable for investors saving for retirement who intend to buy an annuity when they retire. The fund is designed so its value tends to move in a similar way to annuity costs as interest rates change. This can help provide some protection if annuity prices rise suddenly before retirement.

Euro Long Dated Bond is structured to move in a similar way to the cost of annuities when interest rates change. That means if annuity prices rise because rates move, the fund may also rise in a similar pattern. This is useful for investors who want to reduce the risk of having to buy an annuity at a much higher cost later.

Euro Long Dated Bond has a risk rating of 4. As a bond fund focused on long-dated government bonds, its value can change when interest rates move; when rates rise, bond prices usually fall. Investors should make sure they are comfortable with that before investing.