Bank of Ireland Life Fixed Interest

Fixed Interest (Series 3) aims to generate medium to long term capital growth by investing in a range of Euro-denominated government and corporate bonds. This means it lends money to governments and companies through bond holdings, rather than investing in shares. Because the bonds are denominated in euros, the fund is focused on that currency area.

Fixed Interest (Series 3) is actively managed by State Street Investment Management. An active approach means the manager decides which bonds to buy and sell rather than simply tracking an index. The fund also invests in a range of bonds, which gives the manager flexibility to adjust the portfolio over time.

Fixed Interest (Series 3) is designed for investors seeking medium to long term capital growth and who are comfortable investing for at least 5-7 years. That longer horizon can help reduce the impact of short-term market swings, but it does not remove risk. The fund may suit someone looking for bond exposure rather than shares.

The main risks highlighted for Fixed Interest (Series 3) include sustainability risks. This means environmental, social or governance issues could affect the value of the fund’s investments. As with all bond funds, the value can rise and fall over time, so investors may get back less than they invest.

The factsheet notes that some funds investing in shares or bonds may use securities lending, which can apply to Fixed Interest (Series 3) if it is permitted within the fund. Securities lending means the fund temporarily lends securities to earn extra return. This can increase risk because the fund is exposed to the borrower not returning the securities when expected.