Irish Life Indexed 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, with a focus on preserving capital while earning a reasonable rate of interest. The fund is managed by Irish Life Investment Managers.

Yes. The Indexed Cash Fund only invests in euro-denominated holdings, and all deposits into and out of the fund are made in euro. That means it has no exposure to foreign currencies, so investors do not face currency risk from exchange-rate movements. Currency risk means the value of an investment can change when one currency moves against another.

The Indexed Cash Fund is intended to be low risk, but its value can still fall. The factsheet says this could happen if the underlying assets have negative growth, if a bank holding a deposit cannot repay it, or if the fund charge is greater than the assets' growth. Bank default risk means a bank may fail to return money it owes, which could reduce the fund's value.

The Indexed Cash Fund may suit investors looking for a cash-style investment with a high degree of security and euro-only exposure. It aims to achieve a reasonable rate of interest rather than higher-growth returns, so it is likely to appeal to investors prioritising stability over capital growth. Because it is low risk rather than no risk, investors should still be comfortable with some possibility of loss.

A key feature of the Indexed Cash Fund is that it invests across deposits and short-dated money market instruments while remaining fully euro-denominated. Its top holdings include a range of banks and financial institutions such as Bank Nederlandse Gemeenten, Bank of Montreal and HSBC Continental Europe. This gives the fund broad exposure to euro cash-market instruments without taking foreign-currency exposure.