Zurich Life 5 Star 5 Global

The 5 ★ 5 Global Fund is an actively managed global equity fund that normally holds up to fifty stocks across five different sectors. It invests mainly in equities, with the option to hold cash or cash equivalents for tactical reasons. The fund is managed by Zurich Life and is aimed at generating growth through stock selection.

The 5 ★ 5 Global Fund is managed actively, with Zurich Life focusing on its sector and stock selection skills in global equities. The portfolio is concentrated, and the fund may vary its sector and equity choices over time to respond to changing market conditions. In practice, that means the manager can adjust the holdings more flexibly than a passive index fund.

The 5 ★ 5 Global Fund carries stock-specific risk because it holds a relatively concentrated portfolio, so a small number of holdings can have a bigger impact on returns. It also has currency risk because it invests some assets outside the eurozone; for a euro investor, that means exchange-rate movements can affect the value of overseas investments when they are converted back into euros.

The 5 ★ 5 Global Fund is spread across five broad sectors: Consumer & Communications, Financials & Real Estate, Healthcare & Personal Products, Resources & Infrastructure, and Technology & Industrials. Its top holdings include names such as NVIDIA, Alphabet, Taiwan Semiconductor, Apple, Samsung Electronics, Amazon, Microsoft, Citigroup, Visa and ITOCHU. This shows the fund has a strong tilt toward large global companies, especially in technology and communications.

The 5 ★ 5 Global Fund may suit investors seeking growth from a concentrated global equity portfolio and who are comfortable with higher stock-specific risk. Because it can invest outside the eurozone, it may also suit investors who understand that currency movements can affect returns. As it is an equity-focused fund, it is generally more suited to investors willing to accept volatility in pursuit of growth.