Zurich Life Indexed Australasian Property

The Indexed Australasia Property Fund invests in an iShares Exchange Traded Fund managed by BlackRock, giving exposure to leading real estate companies in Australasia. Its underlying holdings include property-related names such as Mitsui Fudosan, Sun Hung Kai Properties, Scentre Group and Link Real Estate Investment Trust. The fund can also hold some cash as part of its management.

The Indexed Australasia Property Fund is passively managed, which means it aims to track an index rather than try to outperform it through active stock-picking. The factsheet says the iShares ETF aims to track an index, but it will not track it exactly. Zurich Life also reserves the right to replace the ETF with another fund if needed.

The Indexed Australasia Property Fund focuses on Australasia and has exposure across Japan, Hong Kong, Australia, Singapore, New Zealand and Korea. It also includes a money market allocation, which is cash-like holdings used for liquidity and fund management. This gives investors broad exposure to property-related companies across the region.

The Indexed Australasia Property Fund carries currency risk because some of its assets are invested outside the eurozone. Currency risk means exchange-rate movements can reduce or increase returns when overseas investments are converted back into euros. Investors should expect the fund's value to move not only with property and equity markets, but also with foreign currencies.

The Indexed Australasia Property Fund may suit an investor who wants passive exposure to listed property companies in the Australasia region through a unit-linked fund. It may appeal to someone looking for diversification across several regional markets rather than a single country. Because it invests in equities and overseas assets, it is likely more appropriate for investors comfortable with market and currency fluctuations.