Zurich Life World Allocation 80/20 (Dimensional)

The World Allocation 80/20 Fund (EUR, Acc.) is a fund of funds that mainly invests in other investment funds, while also being able to invest directly in shares and debt. It aims to achieve long-term total return. Because it can hold both equities and bonds, it is designed as a mixed-asset strategy rather than a single-asset fund.

The World Allocation 80/20 Fund (EUR, Acc.) is managed on a discretionary basis, meaning the manager actively decides how to allocate the portfolio rather than following a fixed rule set. The fund does not have a benchmark. That gives the manager flexibility to adjust holdings across underlying funds, shares and debt as market conditions change.

The World Allocation 80/20 Fund (EUR, Acc.) may suit investors seeking broad, diversified exposure through a single fund. Its fund-of-funds structure means it spreads money across other funds, which can increase diversification but also adds another layer of underlying fund risk and cost. As with all investing, the value can rise and fall and capital is at risk.

The World Allocation 80/20 Fund (EUR, Acc.) is exposed to several risks, including market, credit, liquidity, currency and interest rate risk. Currency risk means exchange-rate movements can affect returns when investments are held in different currencies. The fund can also be affected by political and economic risks when investing abroad, as well as derivative risks if derivatives are used.

The World Allocation 80/20 Fund (EUR, Acc.) may use derivatives, including for hedging purposes such as reducing currency fluctuations. However, the document says their effectiveness is not guaranteed. Derivatives can also introduce leverage, counterparty and liquidity risks, which means losses may be amplified and a trade may be harder or more expensive to unwind.