Europe ex UK Tracker Fund


Fund overview

The investment objective of the Fund is to achieve the capital return of the FTSE® World Europe ex UK Index. The Fund invests in the shares of companies based in European countries, excluding the UK. The Fund invests primarily in the securities that make up the FTSE®World Europe ex UK Index, aiming to closely replicate this benchmark. The Fund is competitively priced to offer a low cost index tracking solution.

Manager

JoJo Chen joined RLAM as a Passive Fund Manager in June 2016. Prior to joining RLAM she was an assistant fund manager at UBS Asset Management, mainly looking after various passive index linked funds/ETFs. Her previous positions include business unit controller in the UBS investment banking division, monitoring equity derivatives and a role as an equity derivative financial analyst at Bank of America Merrill Lynch. JoJo also spent three years at KPMG LLP before moving into the banking/asset management industry. She is a CFA charter holder and qualified accountant (ACCA).

Investment approach

The Fund manager uses an optimised portfolio to track the capital return of the FTSE® World Europe ex UK Index. RLAM's Quantitative team take the view that full replication may result in too much costly trading, which could outweigh the benefit of perfect replication.

An optimiser is used to help construct a portfolio designed to track the performance of the benchmark without necessarily holding all the constituents in their exact benchmark weights. The optimiser uses an algorithm which minimises tracking risk, based on a multi factor model and associated covariance matrix.

In practice, the Fund holds most of its benchmark's names as well as having holdings in futures and cash.

The Fund may use derivatives, but for efficient portfolio management purposes only.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. All rights in the FTSE® World Europe ex UK Index (the “Index”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. The Royal London Europe ex UK Tracker Fund (the " Fund") has been developed solely by Royal London Asset Management. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Fund and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by Royal London Asset Management.