Zurich Life Medium Duration Corporate Bond

The Medium Duration Corporate Bond Fund primarily invests in investment grade corporate bonds. It may also invest in supranational bonds and sovereign bonds. The fund is managed actively by Zurich Life.

The Medium Duration Corporate Bond Fund typically holds bonds with an average duration of 5 to 7 years. That can move lower, to around 2 years, or higher, to up to 10 years. Duration is a measure of how sensitive bond prices are to changes in interest rates, so a longer duration generally means more price movement when rates change.

Yes, the Medium Duration Corporate Bond Fund may invest some of its assets outside the eurozone, including in North America, the UK, Europe, Asia Pacific ex Japan and Japan. Any non-euro exposure is subject to currency and duration limits. Currency risk means exchange-rate moves can increase or reduce returns when investments are held in different currencies.

The Medium Duration Corporate Bond Fund carries liquidity risk and currency risk. Its factsheet notes that corporate bonds can be harder to sell quickly at full value than sovereign bonds, which can affect returns if investors buy or sell at the wrong time. It is managed from the point of view of a euro investor, and any hedging that is carried out would be into euros.