Zurich Life 5 Star 5 Europe

The 5 ★ 5 Europe Fund is an actively managed equity fund that normally holds up to fifty shares across five sectors in the Europe region. It focuses on Zurich Life’s stock and sector selection and may also hold cash or cash equivalents for tactical reasons. The fund generally keeps an indicative equity exposure of 80% to 100%.

The 5 ★ 5 Europe Fund uses a concentrated portfolio, which means it holds relatively few investments and can be more affected by the performance of any single company. This creates higher stock specific risk, meaning one holding’s bad news can have a bigger impact on the fund. It also invests some assets outside the eurozone, so currency risk arises for a euro investor; this means exchange-rate moves can affect returns when foreign-currency investments are converted back into euros.

The 5 ★ 5 Europe Fund is built around five sectors: Consumer & Communications, Financials & Real Estate, Healthcare & Personal Products, Resources & Infrastructure, and Technology & Industrials. Its holdings include companies such as ASML, TotalEnergies, Santander, Siemens Energy, AstraZeneca, and Schneider Electric. Zurich Life may vary the sector mix and stock selection over time to try to take advantage of changing market conditions.

The 5 ★ 5 Europe Fund is managed by Zurich Life. The fund is managed from the perspective of a euro investor, and any currency hedging that is used would be into euros. That means the manager aims to consider how foreign-currency assets may affect euro-based investors.

The 5 ★ 5 Europe Fund aims to achieve growth by investing in European equities, so it is designed for investors seeking exposure to the European stock market. Its active approach and concentrated portfolio may appeal to investors who want a focused selection of shares rather than a broad index-style fund. Because it carries stock specific risk and currency risk, it is likely to suit investors who can accept higher volatility.