Zurich Life Dimensional Global Investment Grade Fixed Income

The GLOBAL SHORT-TERM INV. GRADE FI FUND (EUR, ACC.) invests mainly in debt obligations, with a focus on short-term investment-grade fixed income securities. It is a global bond fund, so its holdings can come from countries such as the United States, Canada, France, Germany and Australia. The fund aims to maximise total returns from this universe of bonds.

The GLOBAL SHORT-TERM INV. GRADE FI FUND (EUR, ACC.) is actively managed, meaning the portfolio team makes investment decisions rather than simply tracking an index. Its benchmark is the Bloomberg Global Aggregate Credit Bond Index 1-5 Years (hedged to EUR), which gives a reference point for short-duration global credit bonds. Active management means the fund can choose which securities to hold and how to position the portfolio within its stated mandate.

The GLOBAL SHORT-TERM INV. GRADE FI FUND (EUR, ACC.) is exposed to bond risks such as interest rate risk, credit risk and liquidity risk. Interest rate risk means bond prices can fall when market yields rise; credit risk means an issuer may become less able to repay its debt. Because the fund also invests globally, it can face political and economic risks from overseas markets, and any use of derivatives can add leverage and counterparty risk, meaning losses may be amplified and the other party to a trade may fail to meet its obligations.

The GLOBAL SHORT-TERM INV. GRADE FI FUND (EUR, ACC.) may use derivatives. They can be used to hedge risks such as currency fluctuations, but their effectiveness is not guaranteed. Derivatives can also introduce leverage, market, liquidity, interest rate and counterparty risks, which means losses may move faster or become larger than in a direct bond-only portfolio.