Fund overview
The Royal London Index-Linked Fund is invested predominantly in UK index-linked government bonds. We also supplement our investments 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 active returns from UK index-linked government bond markets delivered in a risk controlled manner. The fund is benchmarked against the FTSE A Index-Linked Over 5 Year Gilt Index.
Manager
Craig Inches is the fund's lead manager, working closely with RLAM's Head of Government Bonds, Paul Rayner. He is supported by a skilled and experienced team.
Craig joined RLAM in 2009 after an eleven year career at Scottish Widows Investment Partnership (SWIP) where he was Fixed Income Investment Director. Craig has an MSc in Investment Analysis from Stirling University.
Investment approach
Our approach to managing index-linked bonds stems from our core belief that skilled investors like RLAM are able to add value through multiple sources. We focus on both bottom-up stock selection opportunities, as well as exploiting the top-down macroeconomic drivers which influence government bond markets.
RLAM’s quarterly economic review forms the bedrock of our government bond investment process. This covers all major economic regions and focuses upon key variables which may affect real and nominal yields. Through this analysis we establish our key views relating to asset allocation and duration/yield curve positioning. 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 investment team to build portfolios where the size of active positions is consummate to the level of conviction we have in an idea. In this way, we ensure risk is focussed on areas of the market where we see most value, and portfolios are built with the risk and return objectives of our clients in mind.