International Government Bond Fund

Fund Objective

The Fund’s investment objective is to achieve a total return over the medium term (3-5 years) by investing at least 80% in government bonds globally. The Fund’s performance target is to outperform, after the deduction of charges, the JP Morgan Global Bond Index ex UK (Traded) Total Return (GBP hedged) Index (the "Index") over rolling 5-year periods. For further information on the Fund's index, please refer to the Prospectus, available via the fund information section of this website. The Fund is actively managed.

Fund manager

The Lead Fund Manager is Paul Rayner, he is supported by co-manager, Gareth Hill.

Paul Rayner is Head of Government Bonds at RLAM.  Paul joined RLAM in June 2005 from SG Asset Management where he was Head of UK Bonds. Paul has over 30 years’ experience in managing UK and global government bonds and is a graduate in Economics from the University of Kent. 



Gareth Hill joined the Government Bond team in November 2015 having previously been RLAM’s Head of Portfolio Risk. He joined the Firm in March 2012 from Henderson Global Investors where he was most recently a Fund manager on the Multi Strategy Equities team. Prior to this, Gareth was Head of Alternative Risk Measurement and later overall Head of Risk Measurement. Gareth’s early part of his career was spent as a Senior Consultant at Barra International in London. Gareth graduated from the University of Liverpool in 1994 with a BA (Hons) in Economics.  He is also a CFA Charterholder.

Investment approach

The Fund is managed using a combination of top-down analysis combined with bottom-up security selection. The process starts with macroeconomic analysis covering all major regions and focusing on key variables such as growth rates and inflation. This enables the manager to formulate outlook scenarios, including long-term yield and interest rate forecasts, which underpin the investment strategy and help determine 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.

At the micro level, the selection of individual government bonds is driven by the manager's economic views and an assessment of value based on our proprietary relative value model. The output from this model is reviewed daily and used alongside other regression-based models to assist with the selection of individual bonds, in combination with important stock specific factors.

The manager looks to add value through multiple sources in a variety of markets, believing that skilled investors are able to add value through bottom-up stock selection, as well as exploiting the top-down macroeconomic drivers which influence global government bond markets.

Embedded within our 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, we ensure 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.