Zurich Life Global Short Fixed Income (Dimensional)

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) invests mainly in short-term bonds and seeks to maximise current income while preserving capital. It is managed actively and is benchmarked against the FTSE World Government Bond Index 1-5 Years (hedged to EUR). Its portfolio can include government-related exposures from countries such as Canada, Germany, the Netherlands and Australia, as well as supranational issuers.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) aims to preserve capital by focusing on short-duration fixed income rather than longer-term bonds. Short-term bonds generally tend to be less sensitive to interest-rate moves than longer-term bonds, although they can still fall in value. The fund also seeks to manage currency exposure through a EUR-hedged benchmark, though hedging may not remove all currency risk.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) carries bond-market risks such as interest rate risk, credit risk and liquidity risk. Rising yields can reduce bond prices, and weaker credit quality can make issuers less likely to meet their obligations. Because the fund invests globally, it may also face international, political and economic risks; in plain language, events in other countries can affect the fund's value.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) may use derivatives, mainly to hedge risks such as currency fluctuations. Derivatives can also bring extra risks, including leverage, counterparty and liquidity risk; counterparty risk means the other side of a contract might fail to pay or perform. The fund says hedging is not guaranteed to work perfectly.

The GLOBAL SHORT FIXED INCOME FUND (EUR, ACC.) may suit investors looking for current income from a global short-duration bond portfolio with an emphasis on capital preservation. It may be more appropriate for investors who want bond exposure but prefer less interest-rate sensitivity than in longer-maturity funds. Investors should still be comfortable with the possibility of losses and fluctuations in value.