Zurich Life Dimensional Global Short Fixed Income

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) primarily invests in bonds. It is a global short-duration fixed income fund, and its benchmark is the FTSE World Government Bond Index 1-5 Years (hedged to EUR), which suggests a focus on shorter-dated government bond exposure. The fund is actively managed.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) aims to maximise current income while preserving capital. In plain language, that means it seeks to generate regular income from bonds while trying to limit losses in the value of the investment. Capital preservation is not guaranteed, so investors can still lose money.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) has a global focus and its geographic allocation includes Canada, Germany, supranational issuers, the Netherlands and Australia. That means the fund can hold bonds from different countries and institutions rather than focusing on one domestic market. Investing abroad can involve international, political and economic risks, which means events in other countries can affect returns.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) carries several bond-related risks, including interest rate risk, credit risk and liquidity risk. Interest rate risk means bond prices can fall when market yields rise, while credit risk means an issuer may become less able to repay what it owes. The fund may also face market, counterparty and leverage risks if derivatives are used.

Yes, the GLOBAL SHORT FIXED INCOME 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 add leverage, market, counterparty, liquidity, interest rate and credit risks, meaning losses can sometimes be larger or more complicated than with direct bond investments.