Index-Linked Fund

Fund overview

The Fund aims to achieve a combination of income and capital growth by investing predominantly in UK index linked government bonds. The managers also supplement this with a wide selection of index linked corporate bonds as well as overseas government index linked bonds. The Fund may be suitable for investors seeking insulation from moves in inflation and active returns delivered in a risk controlled manner.


Paul Rayner, Head of Government Bonds, is the lead fund manager for this Fund working closely with Fund manager Craig Inches. He is supported by a skilled and experienced team.

Paul joined RLAM in June 2005 from SG Asset Management where he was Head of UK Bonds. Paul has over 25 years experience in managing UK and global government bonds and is a graduate in economics from the University of Kent.

Craig joined RLAM in 2009, becoming Head of Short Rates and Cash in 2016. He is responsible for the management and oversight of RLAM’s short rate strategies which include our Cash Plus and Enhanced Cash Funds. In addition Craig jointly manages the government bond strategies with Paul Rayner, Head of Government Bonds. Prior to RLAM, Craig was an Investment Director with Scottish Widows Investment Partnership. In addition to 18 years of cash and fixed income experience, Craig has an MSc in Investment Analysis from Stirling University and a BSc (Hons) in Actuarial Mathematics and Statistics from Heriot-Watt University.

Investment approach

The Fund Manager focuses on both bottom-up stock selection opportunities, as well as exploiting the top-down macroeconomic drivers which influence government bond markets with the aim of adding value through multiple sources.

RLAM’s quarterly economic review forms the bedrock of the managers' investment process. This covers all major economic regions and focuses upon key variables which may affect real and nominal yields. Through this analysis key views relating to asset allocation and duration/yield curve positioning are established. This strategic outlook is complemented by tactical views which may reflect shorter-term considerations such as technical analysis, relative valuation anomalies, market momentum and supply considerations.

Embedded within this approach is a disciplined risk framework which allows our Fixed Interest Team to build portfolios where the size of active positions is consummate to the level of conviction they have in an idea. In this way, risk is focused on areas of the market deemed to have most value.

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. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. 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. This fund can invest more than 35% of its value in government securities.