Fund overview
The investment objective of the fund is to seek to achieve the total return of the FTSE® All Share Index by investing primarily in securities that make up the FTSE® All Share Index. The fund is competitively priced to offer a low cost index tracking solution for clients.
Manager
Vicky Harriss has been a key member of RLAM's Quantitative team since 2002. In addition to managing RLAM’s UK All Share Tracker Fund, she manages the FTSE® 350 Tracker Fund, with a combined approximate of £5bn assets under management. Prior to joining RLAM, Vicky held a variety of project management, strategic and research positions at Strategic Planning Ltd, British Gas, Hoover Ltd and British Gypsum. She has a BSc Hons in Physical Chemistry from University of Liverpool. She also holds Diplomas in Market Research and Marketing from Kingston Business School.
Investment approach
The fund manager uses an optimised portfolio to track the total return of the FTSE® All Share Index. We take the view that full replication can result in too much costly trading, which may outweigh the benefit of perfect replication.
We use an optimiser 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. This gives the flexibility not to trade every index or cash flow event.
Whilst the fund is not fully replicating, in practice it may hold most of the index constituents in weightings very close to the index weights. FTSE® futures are used for cash management purposes.