Irish Life Cash

The Indexed Cash Fund invests in deposits, short dated bonds and other money market instruments. It is designed to be a low-risk cash-style fund, rather than a growth-focused equity fund. The fund is managed actively by Irish Life Investment Managers.

The Indexed Cash Fund could fall in value if the assets it holds do not grow, if a bank that holds one of its deposits cannot repay it, or if the fund charge is higher than the growth rate of the assets. In simple terms, even low-risk funds can lose money if income and asset growth are not enough to offset costs or a default. The fund itself says investors should be aware of this risk.

No, the Indexed Cash Fund has no exposure to foreign currencies. It only invests in euro, and all deposits into and out of the fund are made in euro. That means investors do not have currency risk, which is the chance that exchange-rate movements reduce returns.

The Indexed Cash Fund aims to achieve a reasonable rate of interest with a high degree of security. That makes it suitable for investors looking for a cash or money-market style holding rather than higher-risk growth assets. Its low-risk profile is reflected in its SRI rating of 1.

The Indexed Cash Fund’s top holdings include banks and public-sector borrowers such as Bank Nederlandse Gemeenten, Bank of Montreal, Commonwealth Bank of Australia, Credit Agricole Corporate and Investment Bank, DNB Bank and DZ Bank. This shows the fund is diversified across a range of issuers and countries, including Germany, Canada, France, Japan, the UK and Australia. For investors, diversification means the fund is not relying on just one borrower.