Investment Approach

The Fund aims to achieve a total return on your investment, through a combination of capital growth and income, which aims to provide some outperformance (before deduction of the Fund’s fees and expenses) of the return of the Bloomberg Custom US and Canada Treasury Index GBP Hedged, the Fund’s benchmark index (Index). The Fund has an enhanced index strategy which differs from a pure-index tracking strategy. Although both strategies invest in a similar range of fixed income (FI) securities (such as bonds), enhanced index strategies aim to take overweight and/or underweight positions relative to the Index in order to achieve some outperformance of the Index (before deduction of the Fund’s fees and expenses). The Fund invests in the FI securities, denominated in US dollars (USD) or Canadian dollars, that predominantly make up the Index and instruments related to such FI securities, including financial derivative instruments (FDI) (i.e. investments the prices of which are based on one or more underlying assets). The Index predominantly comprises US and Canadian fixed rate government bonds and will have a credit rating which reflects that of the US Treasury and the Canadian Treasury (as appropriate).