Irish Life Diversified Cautious

The Diversified Cautious Fund invests across a mix of shares, property, bonds, cash, commodities and hedge funds. It is designed to be diversified, with less exposure to higher-risk assets such as shares and hedge funds than a more adventurous fund. The fund also allows both index-linked and actively managed investments within the portfolio.

The Diversified Cautious Fund is aimed at investors seeking low to mid range managed fund returns with the possibility of limited ups and downs. Its cautious approach is intended to reduce risk by spreading money across different asset types. However, it is still an investment fund, so values can rise and fall.

The Diversified Cautious Fund combines a broad range of asset classes, including alternatives such as hedge funds and commodities, with a cautious risk profile. It can invest in both index-linked and actively managed assets, which gives it a blend of passive and active exposure. Parts of the fund may also borrow money to invest in property, which can increase both potential returns and risk.

The Diversified Cautious Fund carries risk from its exposure to equity, property, bond, commodity and alternative assets, so its value can move up or down. Securities lending may also be used, which can increase risk in exchange for the chance of extra return. In plain language, securities lending means the fund temporarily lends out holdings to others and earns a fee, but it takes on some additional risk if the borrower does not return them as expected.

The Diversified Cautious Fund is managed by Irish Life Investment Managers. The fund is open and follows a mixed investment style across several regions and sectors. Its geographic exposure can include the US, Eurozone, UK, Japan and emerging markets.