Fund Objective

To provide a total return by investing in a portfolio of predominantly bonds.

View on Past Performance

The main feature of the world's bond markets in July was a "flight to quality", precipitated largely by fears over US subprime mortgages. Investors switched from "risk assets" such as equities and corporate bonds into government bonds.Continued relatively heavy supply from the Debt Management Office was more than matched by heavy demand for inflation-linked bonds, particularly from institutional investors looking to match liabilities. As a consequence, index-linked assets performed better than conventional gilts. The manager used positive cash flow during the month to reduce duration exposure.The Fund performed below benchmark in July with the overweight position taken at the short end of the curve proving detrimental as longer dated bonds outperformed.

Fund Details