The Fixed Interest and Cash strategies have the ability to add diversification within a balanced portfolio smoothing returns over time. The Fixed Interest Fund targets total return through interest, coupon income and capital appreciation. The Cash Fund invests in short term liquid investments while the Fixed Interest Fund invests in Euro denomination government, government agency and government guaranteed debt.
The Fixed Interest Fund is an actively managed portfolio invested mainly in government, government agency and covered bonds. The bulk of exposure is in Euro, although the Fund can take advantage of non Euro fixed income investments, up to a maximum exposure of 40% of fund assets. The Fund invests in the highest quality investments with a minimum credit rating of “A” at time of purchase.
The Cash Fund is an actively managed Fund that may invest in (i) Euro denominated short-dated term deposits with banks and/or eligible credit institutions on Canada Life’s approved short-term borrowers list which have a minimum credit rating of A2/P2 and which are authorised to carry on a banking business in the State under Section 9 of the Central Bank Act, 1971 and/or (ii) Euro denominated bonds issued by governments or corporates subject to a minimum average credit rating of individual securities of ‘A’ and for the portfolio an average rating of ‘AA’.
