Zurich Life Cash

The Cash Fund invests in deposits and money market instruments, as well as short-dated fixed income securities issued by governments in the euro currency bloc. The fund is managed actively by Zurich Life. It is designed to keep risk low rather than to seek higher returns.

The Cash Fund is intended to be a low-risk investment option, but the factsheet says it may not be appropriate for longer-term investment because returns are relatively low. The Cash Fund may suit investors who want a cash-like holding rather than growth over many years. Investors should compare it with their own investment objectives before choosing it.

The Cash Fund has no capital security, so its value can fall. For example, if a bank that the fund has placed a deposit with cannot repay some or all of that money, the fund may lose value; this is called counterparty risk, meaning the fund is relying on another institution to meet its obligations. The fund can also fall in value if charges are higher than the returns it earns.

No. The Cash Fund does not permit non-euro exposure, so it is focused on the euro currency bloc. This helps limit currency risk, which means exchange-rate movements between currencies cannot affect the fund in the same way they could in a multi-currency investment.

The Cash Fund seeks to manage risk by spreading assets across a range of counterparties that must meet a minimum credit rating. It also limits the portfolio to euro-related exposures only. These features are aimed at supporting the fund’s low-risk profile.