New Ireland Indexed Eurozone Long Bond

Pen Indexed Eurozone Long S3 R invests in two underlying bond funds: the State Street Euro Core Treasury Bond Index Fund and the State Street IUT Euro Core Treasury 10+ Year Bond Index Fund. Together, these exposures focus on long-dated eurozone government bonds. The fund is designed to closely track that bond market segment rather than take an active stock-picking approach.

Pen Indexed Eurozone Long S3 R aims to approximately match the cost of buying a pension annuity by investing in long-dated eurozone government bonds. Long-dated bonds generally move in a similar way to annuity pricing, so the fund is intended to help align an investor's assets with annuity purchase costs. This does not remove risk, as bond values can still rise and fall over time.

Pen Indexed Eurozone Long S3 R is aimed at investors with a medium to long-term horizon of at least 5-7 years. It may suit someone seeking eurozone government bond exposure linked to annuity-style outcomes rather than higher-growth assets like shares. The fund name includes the eurozone focus, so it is mainly for investors comfortable with that regional exposure.

The main risk highlighted for Pen Indexed Eurozone Long S3 R is sustainability risk. This means environmental, social, or governance issues could affect the value of the underlying investments. Because the fund holds long-dated bonds, its value can also fluctuate as interest rates and bond prices change.

Pen Indexed Eurozone Long S3 R invests through underlying funds that may use securities lending in some cases. Securities lending means the fund may temporarily lend out bonds or shares to earn extra return. This can add a small amount of extra income, but it can also introduce additional risk if a borrower fails to return the securities.