Zurich Life Indexed Commodities

The Indexed Commodities Fund aims to give investors exposure to commodities markets, including energy, grains, industrial metals and precious metals. It does this by investing in the Invesco Exchange Traded Fund (ETF), which holds futures linked to those commodity areas. The fund also can hold some cash as part of its day-to-day management. Because it is commodity-linked, returns will depend on movements in those markets.

The Indexed Commodities Fund is passively managed, meaning it aims to follow an index rather than actively pick investments. It invests in the Invesco Exchange Traded Fund (ETF), which aims to track its index but will not mirror it exactly. Zurich Life also reserves the right to replace that ETF with another fund if needed. This means the fund is designed for index-style exposure rather than active stock or sector selection.

The Indexed Commodities Fund may suit a euro investor who wants commodity exposure but is comfortable with currency movements. Some of the fund’s assets are invested outside the eurozone, so currency risk arises. Currency risk means exchange-rate changes can reduce or increase returns when investments are valued back into euros. Investors should be aware that this can add volatility to the fund.

The main risk highlighted for the Indexed Commodities Fund is currency risk, because some assets are held outside the eurozone. The fund is also exposed to commodity market movements through energy, grains, metals and other futures, so its value can move sharply when those markets change. Since the fund invests via an ETF, it follows market exposure rather than trying to protect against losses. Investors should be prepared for fluctuations in value.

The Indexed Commodities Fund focuses on several named commodity areas: energy, grains, precious metals and industrial metals. Its underlying ETF holds exposures such as Brent crude, WTI crude oil, natural gas, copper, gold, soybeans and corn. This gives the fund broad exposure across key commodity sectors rather than just one single market.