Irish Life Multi-Asset Portfolio 5

Multi-Asset Portfolio 5 invests in a diversified mix of equities, property, bonds, alternatives and cash. It also includes externally managed specialist funds and may hold cash from time to time. The fund name does not imply a single-asset approach; instead, it uses a multi-asset mix that can change over time.

Multi-Asset Portfolio 5 is described as medium to high risk, with a relatively high exposure to higher-risk assets such as shares and property. That means its value may move up and down more than a lower-risk fund because shares and property prices can be volatile. The manager monitors and rebalances the portfolio regularly to keep it within its target risk level.

Multi-Asset Portfolio 5 targets strategies that support its sustainability goals by excluding or reducing exposure to companies with poorer sustainability characteristics and increasing exposure to companies with better ones. Sustainability characteristics are also considered when selecting property and alternative funds. In practice, the fund seeks to align the portfolio with these goals while still aiming for positive returns.

Multi-Asset Portfolio 5 may fully or partly hedge non-euro currency exposure back to euro. This is designed to reduce currency exchange rate risk, which is the risk that movements in foreign exchange rates could reduce returns for a euro-based investor. The fund still may have some exposure to overseas currencies depending on how much hedging is used.

Multi-Asset Portfolio 5 uses an Active & Passive Multi Strategy and combines shares, property, bonds and specialist funds rather than relying on one type of asset. It also integrates sustainability considerations and may use securities lending to try to earn extra return for the fund. The manager can adjust the mix over time, so the portfolio is actively maintained rather than fixed.