AIB Life Fusion 2

Fusion 2 aims to provide a diversified investment while keeping to a low risk rating. It mainly invests in lower risk and diversifying assets such as cash, bonds and alternatives, with a small allocation to higher risk assets such as equities and property. The fund uses a mix of active and passive investing to gain this exposure.

Fusion 2 is designed around a low risk profile and therefore favours cash, bonds and alternatives over higher risk assets. It does still include some equities and property, so its value can rise and fall with markets. Equity and property risk means the value of these investments can change more sharply than cash or bonds, which can increase overall volatility.

Fusion 2 is an Article 8 fund under the SFDR and incorporates environmentally friendly or socially responsible investments. In practice, Fusion 2 targets strategies that exclude or reduce exposure to companies with poorer sustainability characteristics and increase exposure to companies with better sustainability characteristics. It also considers sustainability characteristics when selecting property and alternative funds.

Fusion 2 has exposure across a broad range of sectors, including Information Technology, Financials, Industrials and Consumer Discretionary, as well as regions such as the United States, Eurozone, Japan and emerging markets. This wide spread is intended to support diversification within the fund. The fund’s holdings include large global companies such as NVIDIA, Apple, Microsoft and Alphabet.

Fusion 2 may suit an investor looking for a diversified fund with a low risk focus and some sustainability considerations. Fusion 2 combines lower risk assets with a smaller allocation to equities and property, so it may appeal to someone who wants growth potential but not a heavily equity-based portfolio. The fund is managed by Irish Life Investment Managers.