FTSE 350 Tracker Fund


Fund overview

The investment objective of the Fund is to achieve the total return of the FTSE® 350 Index.  The Fund invests primarily in the securities that make up the index, aiming to closely replicate this benchmark. The Fund is competitively priced to offer a low cost index tracking solution.

Fund manager

Nils Jungbacke joined RLAM in January 2018 from HSBC Global Asset Management to help manage the passive equity fund range, and participate in the expansion of RLAM’s quantitative capabilities. Nils started his career in 1997 at Old Mutual Asset Managers, after which he joined Barclays Global Investors to manage UK equity active quantitative portfolios. In 2001, Nils joined HSBC and built a multi-factor quantitative equities product, achieving a long-term track record of outperforming global equity benchmarks. Nils has a Masters in Financial Mathematics from Kings College London, and a Master in Materials Science from the University of Cape Town.

 

Investment approach

The Fund manager uses an optimised portfolio to track the total return of the FTSE® 350 Index. RLAM's Quantitative team take the view that full replication can result in too much costly trading, which may 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 may hold all the index constituents in weightings very close to the index weights.

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® 350 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 FTSE 350 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.