Royal London Index Linked A

Holds Government, public and corporate Index Linked securities in the UK.

  • 313.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 4.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.40%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.45%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 1.90%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 November 2020, fund data last updated 27 February 2012

The fund aims to maximise total returns by investing predominantly in UK government index-linked bonds, a small percentage may also be held in index-linked corporate bonds. Income and principal on index-linked bonds are linked to RPI, going forward new issues will be linked to CPI. The fund's total return is also dependent on movement in 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. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector UK Index Linked Gilts
Structure OEIC
Launched February, 1990
Size £526m
Yield 1.90%
Charging basis Income
Dividends paid Jun, Dec

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.40%
Ongoing charges figure 0.45%

Allocation

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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.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.01%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 65.20%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Paul Rayner / Craig inches

Rayner graduated with a degree in Economics from the University of Kent. He joined Hambros Bank in 1983 where he specialised in Fixed Income Fund management and was appointed a Director in 1996. In March 1998 he joined SG Asset Management with responsibility for the UK fixed income and cash funds. Joined RL in June 2005. Craig joined RL in Jan 2009 after 11 years at Scottish Widows where he was fixed income investment director. He has an MSc in investment analysis from Stirling University.

Track record

Paul Rayner / Craig Inches has 4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.01%. During the worst period of relative performance (from August 2001 - October 2002) there was a decline of 5% relative to the index. The worst absolute loss has been 3%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 65%.

Periods of worst performance

Absolute -3.00% (May 2003 - October 2003)
Relative -5.00% (August 2001 - October 2002)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

7.7325% Hm Treasury United Kingdom Dmo 0.125% Idx Lkd Gilt 22/3/44 Gbp0.01
7.1063% Uk Gilt I/L 1.25% 22/11/2055 3mocpn Rate
6.2683% Uk Treasury 1.875% 22/11/2022
6.1317% Hm Treasury United Kingdom Dmo 0.25% Idx Lkd Gilt 22/3/52 Gbp0.01
5.4121% Hm Treasury United Kingdom Dmo 0.125% Idx Lkd Tsy Gilt 10/08/28 Gbp0.01
5.1502% Hm Treasury United Kingdom Dmo 0.375% Idx-Lkd Gilt 22/03/62 Gbp
4.8544% Hm Treasury United Kingdom Dmo 0.625% Idx Lkd Gilt 22/11/42 Gbp0.01
4.7165% Hm Treasury United Kingdom Dmo 0.625% Idx Lkd Gilt 22/3/40 Gbp0.01
4.3881% Hm Treasury United Kingdom Dmo 0.125% Idx Lkd Tsy Gilt 22/11/56 Gbp0.01
4.2466% Hm Treasury United Kingdom Dmo 0.125% Idx Lkd Tsy Gilt 10/08/41 Gbp0.01
Source: Trustnet

Sector breakdown

Index Linked 98.00%
Government Bonds 2.00%

Portfolio

Portfolio holds 25-35 stocks in total, generally with the top ten accounting for up to 75% of assets. Assets are split between UK index-linked corporate bonds but are overwhelmingly index-linked gilts.

Key Investor Information

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