Zurich Life Indexed Global Equity (BlackRock)

The Indexed Global Equity Fund (BlackRock) invests in the iShares Developed World Index Fund managed by BlackRock, which means it gives exposure to companies in the developed world. It is a passive equity fund, so it aims to follow an index rather than try to beat it. The fund seeks total return from both capital growth and income. Because it is equity-based, its value will move with stock markets.

The Indexed Global Equity Fund (BlackRock) is invested across developed-market equities, with holdings shown in the US, Japan, the UK, Canada, France, Switzerland, Germany, Australia, the Netherlands, Spain and Sweden, among others. Its sector exposure includes Information Technology, Financials, Industrials and Health Care, as well as Consumer Discretionary and Communication. This means the fund is diversified across both countries and industries, rather than concentrated in one area.

The Indexed Global Equity Fund (BlackRock) invests some of its assets outside the eurozone, so a euro investor faces currency risk. Currency risk means exchange-rate movements can reduce or increase the value of overseas investments when they are converted back into euros. In practice, this means the fund may rise or fall not only because of share-price changes, but also because foreign currencies move against the euro.

The Indexed Global Equity Fund (BlackRock) is passively managed, so it aims to track the performance of its underlying index through the iShares Developed World Index Fund. That means the manager is not trying to pick individual stocks to outperform the market, but instead to mirror broad developed-world equity exposure. The fund is also described as a two stage switch fund, which is a structure used within the policy framework and explained in the policy document or by Zurich Life.

The Indexed Global Equity Fund (BlackRock) may suit an investor who wants broad exposure to developed-world shares and is comfortable with equity market ups and downs. It seeks long-term total return from a diversified basket of developed-market companies, including large names such as NVIDIA, Apple, Microsoft and Amazon. As with any equity fund, the value can fall as well as rise, so it is generally more appropriate for investors with a medium- to long-term outlook.