Zurich Life Dimensional World Allocation 20/80

The World Allocation 20/80 (Dimensional) aims to invest about 80% of its net assets in debt and about 20% in shares. In practice, the World Allocation 20/80 (Dimensional) gains exposure to high-quality debt such as bonds, money market instruments and commercial paper, as well as shares from developed and emerging markets. Its share portion uses a core strategy, with a greater allocation to small companies and value companies.

The World Allocation 20/80 (Dimensional) is designed for investors seeking long-term real growth while accepting that they could lose some or all of their investment. Zurich says the investor should be sufficiently informed about financial markets, or have professional advice, because the value of the fund will move up and down with the performance of its assets. It is also intended for a recommended holding period of seven years.

The World Allocation 20/80 (Dimensional) stands out because it combines a strong fixed-income tilt with a smaller equity allocation, rather than using a more balanced split. Its equity exposure is built using Dimensional’s core strategy, which gives general stock-market exposure while favouring smaller companies and value stocks. The fund also invests across developed and emerging markets, giving it a broad global reach.

The World Allocation 20/80 (Dimensional) is rated 2 out of 7, which Zurich classifies as a low risk class. Even so, the fund can still lose money if markets fall, and there is no protection from future market performance, so investors could lose some or all of their investment. The fund may also use derivatives, which are financial contracts whose value depends on another asset; they can help manage risk or costs, but they can also add complexity.

Yes, the World Allocation 20/80 (Dimensional) may use derivatives to manage risk, reduce costs or improve returns. Derivatives are financial contracts whose value is linked to something else, such as a share, bond or market index. For an investor, that means they can be a useful tool, but they also add complexity to how the fund is run.