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ROYAL LONDON INDEX LINKED A - Fund overview

Bestinvest rating 3 stars


Overview of ROYAL LONDON INDEX LINKED A

Whilst invested predominantly in UK government index-linked bonds, a small percentage may also be held in index-linked corporate bonds. The income and principal repayment on index-linked bonds are linked to the Retail Price Index, going forward new issues are to be linked to the CPI. The fund's total return is also dependent upon movement in underlying index linked bond prices prior to maturity - which can go down as well as up depending on future inflationary expectations, structural demand and other factors.

Standard Initial Charge

4.00% 0.00%

Invest via Bestinvest

to save 4.00%

Fund summary

Sector  UK Index Linked Gilts
Product type  OEIC
Launched  February, 1990
Size  £492m
Yield 0.8%
Charging basis  Income
Dividends paid  Jun & Dec.
Bid price 183.30p

Fund Charges

Standard Initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.40%
Total expense ratio 0.42%
Reduction in yield (10yr) 0.42%

Bestinvest says


Essentially a means of providing core exposure to the UK index linked market and protecting against inflation. The UK index linked gilt market on its own can be volatile. Index linked bonds tend not to generate much income with most of the inflation protection rolled up into capital.

Portfolio

royal london index linked a asset allocation illustration
Allocation Proportion
Equity 0%
High yield bonds 0%
Quality bonds 61%
Property 0%
Commodities 0%
Hedge 39%
Fund cash 0%
royal london index linked a equity geographic illustration
Allocation Proportion
UK 100%
Europe
Nth America
Japan
Pacific
Other Equity
royal london index linked a equity capitalisation illustration
Allocation Proportion
Large Caps 100%
Mid Caps
Small Caps

Investment process


The fund mainly invests in government Index Linked Securities but can also invest in public and corporate Index Linked securities in the United Kingdom. The fund construction is based upon the team's economic and yield curve views, where their convictions are strong this may result in significant positions against the benchmark. The team use a proprietary government bond-pricing model, to assist in identifying stocks that offer particularly good value. The fund can invest in overseas linkers.



The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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