Vanguard UK Inflation-Linked Gilt Index Gross

Seeks to track the Barclays Capital U.K. Government Inflation-Linked Float Adjusted Bond Index.

  • 21203.08p
    Price (Inc)

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  • 21295.94p
    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?

  • 0.00%

    Initial charge

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  • 0.15%
    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).

  • 0.15%
    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.

  • 0.20%
    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 22 January 2021

The objective of the fund is to track the Barclays UK Government Inflation -Linked Float Adjusted Bond index, which measures the performance of the UK government index-linked market. Inflation-linked indices include only capital indexed bonds with a remaining maturity of one year or more. The fund is managed using a full physical replication technique and does not engage in securities lending.

Fund summary

Sector UK Index Linked Gilts
Structure OEIC
Launched February, 2011
Size £2,020m
Yield 0.20%
Charging basis Income
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.15%
Ongoing charges figure 0.15%

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Investment process

Vanguard is one of the largest asset managers in the US and is a leading provider of passive strategies globally. It is structured as a 'mutual' (client-owned) which allows the group to return profits to fund shareholders in the form of lower expenses. The Vanguard UK Inflation-Linked Gilt Index Fund seeks to track the performance of the Barclays UK Government Inflation-Linked Float Adjusted Bond Index. The fund is managed using a full physical replication technique and is currently invested in issues with the average duration of 21.5 years. The fund does not engage in any securities lending.

Essentially a means of providing core exposure to the UK index linked market. Core index linked bond funds are generally more sensitive to changes in their real yields as opposed to break even inflationary expectations. Index linked bonds tend to generate low levels of income with most of the inflation protection rolled up into capital appreciation. The average quality of the underlying issues is AA+ rated and reflects the performance and characteristics of the Gilt market.

Manager research

Average monthly relative returns

  • 16/17 -0.11%
  • 17/18 0.00%
  • 18/19 -0.12%
  • 19/20 -0.08%
  • 20/21 -0.16%

Bestinvest MRI

  • 3 years -0.12%
  • 5 years -0.09%
  • Career -0.08%
  • 3 years 0.20%
  • 5 years 0.10%
  • Career 0.30%

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

Vanguard Group

The Group launched an initial line up of index funds in the UK in June 2009 and has a range of other more diverse investment products. Chief Investment Officer (CIO) Tim Buckley oversees all investment activity at Vanguard. Vanguard Equity Investment Group oversees all passive and active equity portfolios, and alternatives strategies, managed by Vanguard. The group’s headquarters is at Vanguard’s campus in Malvern, Pennsylvania, United States.

Track record

Vanguard Group has 9.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from July 2011 - October 2020) there was a decline of 10% relative to the index. The worst absolute loss has been 16%.

Periods of worst performance

Absolute -16.00% (December 2019 - March 2020)
Relative -10.00% (July 2011 - October 2020)

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.

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Top 10 holdings

Data accurate as at 31 July 2020

5.5102% Hm Treasury United Kingdom Dmo 0.125% Gilt 22/03/68 Gbp0.01
5.4762% Hm Treasury United Kingdom Dmo 1.25% Idx-Lkd Gilt 22/11/55 Gbp0.01
5.2806% Hm Treasury United Kingdom Dmo 0.375% Idx-Lkd Gilt 22/03/62 Gbp
4.5613% Hm Treasury United Kingdom Dmo 0.5% Idx Lkd Gilt 22/3/50 Gbp0.01
4.3332% Hm Treasury United Kingdom Dmo 0.75% Idx Lkd Gilt 22/11/47 Gbp
4.2544% Hm Treasury United Kingdom Dmo 1.125% Idx Gilt 22/11/37 Gbp0.01
4.2293% Hm Treasury United Kingdom Dmo 0.125% Idx Lkd Gilt 22/3/44 Gbp0.01
4.2232% Hm Treasury United Kingdom Dmo 0.625% Idx Lkd Gilt 22/3/40 Gbp0.01
4.099% Hm Treasury United Kingdom Dmo 0.625% Idx Lkd Gilt 22/11/42 Gbp0.01
4.0535% Hm Treasury United Kingdom Dmo 0.25% Idx Lkd Gilt 22/3/52 Gbp0.01
Source: Trustnet

Sector breakdown

Government Bonds 100.00%

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