Investment Approach

The Fund aims to provide a return on your investment (generated through an increase in the value of the assets held by the Fund and/or income received from those assets) by tracking closely the performance of the FTSE Actuaries UK Index-Linked Gilts 0-10 Years Index, the Fund’s benchmark index. The Fund is passively managed and the investment manager has limited discretion to select the Fund’s investments and in doing so may take into consideration the benchmark index. The Fund invests in fixed income securities (such as bonds) that make up the benchmark index and, at the time of purchase, comply with the credit rating requirements of the benchmark index. It may also, at times, invest in other fixed income securities not in the benchmark index. The benchmark index measures the performance of Sterling denominated United Kingdom (UK) Government fixed income securities (gilts). The fixed income securities will have a credit rating which reflects that of the UK Government. The fixed income securities will pay income according to a fixed rate of interest. The fixed income securities will also be index-linked (i.e. both the income payments and capital repayment amount of the fixed income securities are linked to an eligible inflation index such that they are adjusted in line with inflation). They will have a remaining time to maturity (i.e. the time until they become due for repayment) of 0 to 10 years.