Zurich Life World Allocation 20/80 (Dimensional)

The WORLD ALLOCATION 20/80 FUND (EUR, ACC.) is a discretionary fund of funds, so it mainly invests in other investment funds and may also invest directly in shares and debt. Its mix is designed around equities and bonds, with the aim of achieving long-term total return. Because it invests through other funds, the portfolio can have exposure to a range of markets and styles.

The WORLD ALLOCATION 20/80 FUND (EUR, ACC.) aims to achieve long-term total return. The fund is managed on a discretionary basis, meaning the manager makes active allocation decisions rather than tracking a fixed index. The fund name suggests a more defensive allocation bias, but the document only confirms that it invests across equities and bonds through other funds and, at times, directly.

The WORLD ALLOCATION 20/80 FUND (EUR, ACC.) may suit investors looking for a diversified multi-asset solution with exposure to both equities and bonds. It could appeal to investors who want professional allocation across underlying funds rather than choosing individual shares or bonds themselves. As with any investment, the value can fall as well as rise and investors could lose some or all of their money.

The WORLD ALLOCATION 20/80 FUND (EUR, ACC.) carries several risks, including loss of principal, market volatility, credit risk, interest rate risk and currency fluctuations. Investing abroad can add international, political and economic risks, while emerging markets can bring extra liquidity, settlement and custodial risks. In plain language, currency fluctuations mean changes in exchange rates can reduce returns when the fund invests outside the euro.

The WORLD ALLOCATION 20/80 FUND (EUR, ACC.) may use derivatives, although the document does not say they are used all the time. They can be used to hedge risks such as currency fluctuations, but that protection is not guaranteed. Derivatives can also add risks such as leverage, market, counterparty, liquidity, interest rate and credit risk; counterparty risk means the other side of a contract may fail to pay or perform.