Zurich Life Indexed Global Energy & Metals

The Indexed Global Energy and Metals Fund gives investors exposure to energy and metal commodities, including oil, gas, industrial metals and precious metals. It does this by investing in an ETF managed by BNP Paribas rather than buying the commodities directly. The fund therefore focuses on the Commodity & Energy sector.

The Indexed Global Energy and Metals Fund invests in a BNP Paribas ETF that is passively managed and aims to track an index indirectly using derivative instruments. Because of that indirect approach, it will not track the index exactly. In plain language, derivatives are contracts whose value depends on something else, such as a commodity price.

The main risk highlighted for the Indexed Global Energy and Metals Fund is currency risk, because some of its assets are invested outside the eurozone. For a euro investor, this means foreign exchange movements can reduce or increase returns when investments are converted back into euros. The fund also has a relatively high SRI rating of 5, which suggests a higher level of risk.

The Indexed Global Energy and Metals Fund has exposure to futures linked to gold, silver, Brent crude, WTI crude and natural gas among its main holdings. These positions show that the fund is concentrated in energy and metals markets rather than in company shares. It may also hold cash as part of the fund management process.

The Indexed Global Energy and Metals Fund may suit investors who want targeted exposure to global energy and metals prices through a passive structure. It is designed for investors comfortable with commodity market movements and the additional effects of currency risk. The fund is open-ended and Zurich Life may replace the underlying ETF at any stage.