Fund Objective

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

View on Past Performance

Index-linked bonds markedly underperformed gilts during September. The inflationary fears that fuelled demand have dissipated as commodities prices have slumped and economic projections have weakened. Looking ahead, demand for index-linked bonds is likely to remain weak. This was underlined in early exposure by the lacklustre reception given in early October to a government auction of index-linked bonds, where the new issue was sold at a lower price than comparable existing bonds.The Fund was behind benchmark for the month as inflation expectations eased and as a consequence the Fund suffered where it held significant overweight positions in longer dated index-linked gilts.

Fund Details