Zurich Life Indexed Developed World Property

The Indexed Developed World Property Fund invests in a HSBC Exchange Traded Fund (ETF) that aims to give exposure to the largest listed real estate companies and REITs in developed markets worldwide. It is a passive fund, so it seeks to track an index rather than pick individual properties or stocks. The fund’s holdings are concentrated in large property names such as Welltower, Prologis and Equinix.

The Indexed Developed World Property Fund is designed for investors who want broad exposure to developed-world property markets through listed real estate shares and REITs. Its geographic mix includes North America, Japan, the U.K., Australia and several other developed market locations. Because it invests across countries, a euro investor should be aware that exchange-rate movements can affect returns; currency risk means foreign currency moves can either help or hurt the fund’s value.

The Indexed Developed World Property Fund is passively managed through the HSBC ETF it holds. The ETF aims to track an index, but it will not match the index exactly. Zurich Life also reserves the right to replace the ETF with another fund at any stage.

The Indexed Developed World Property Fund offers diversified exposure to a basket of large listed real estate companies and REITs rather than relying on one or two property stocks. That can spread risk across sectors such as industrial, data centres, healthcare property and retail property. It still remains exposed to movements in listed property markets, so if that sector falls, the fund can fall too.