Fund Objective

To achieve income and capital growth.

View on Past Performance

The fund underperformed its benchmark during the twelve-month review period, mostly due to its overweight position in index-linked bonds from UK companies. A raft of new index-linked securities in the corporate sector during the year proved negative for the yields of existing issues.

Future Expectations

An improving economic outlook has lessened demand for most bonds. Whilst investors’ concerns about rising inflation are a threat to conventional fixed-income securities in the UK, this should provide a supportive environment for the index-linked sector. Furthermore, this asset class should benefit from asset allocation shifts away from equities into bonds.

Fund Details