Irish Life Global Cash Fund

The Global Cash Fund invests in deposits, short-dated bonds and other money market instruments. It is managed actively by Irish Life Investment Managers and is designed to hold cash-like, low-risk assets. Its holdings include short-term debt from institutions such as banks and development banks across Europe and other developed markets.

Yes, the Global Cash Fund is intended to be a low-risk investment and aims to achieve a reasonable rate of interest with a high degree of security. However, it can still fall in value if the underlying assets lose value or if the fund’s charges exceed the growth it generates. In plain language, that means an investor could get back less than expected if the assets do not earn enough to cover costs.

No, the Global 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. This means the value should not be affected by exchange-rate movements between currencies.

The main risks for the Global Cash Fund are negative growth in the underlying assets and the risk that a bank or other deposit-taking institution cannot repay money owed to the fund. This second risk is called counterparty risk, which means the other party to a financial transaction may fail to meet its obligation. Even though the fund is designed to be cautious, it can still lose value.

The Global Cash Fund may suit investors looking for a euro-denominated place to park money with a focus on capital preservation and relatively steady interest income. It is aimed at people who want a high degree of security rather than higher returns. The fund’s cash and short-duration bond focus makes it more conservative than many equity or longer-term bond funds.