UK Institutional UK Index Linked Gilt

Strategy highlights

  • Aims to use analysis of inflation and inflation expectations to generate attractive returns
  • Benefits from a broad perspective owing to our long-term thematic research
  • Managed by a focused, experienced fixed-income team
  • Security selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach
Learn more about our multidimensional investment philosophy

Strategy profile

Objective

The strategy seeks to marginally outperform the FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index, over rolling 5-year periods, by achieving long-term income and capital growth from a portfolio comprised predominantly of sterling index-linked government bonds and other public fixed-income securities.

Performance benchmark

FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index

Strategy inception

Composite inception: 1 January 1996

Strategy available through pooled UK vehicle

BNY Mellon Index Linked Gilt Fund

View fund performance
View Key Investor Information Document
View prospectus
UK Inst UK Index-linked gilt strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.

Download Factsheet

Investment team

The strategy is managed by a focused, experienced fixed-income team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Contact us

Howard Cunningham
Howard Cunningham

Portfolio manager, Fixed Income team

Jon Day
Jon Day

Portfolio manager, Fixed Income team

Trevor Holder
Trevor Holder

Portfolio manager, Fixed Income team

Ella Hoxha
Ella Hoxha

Head of Fixed Income

Insights

Blog

US election: Third time’s a charm?

We consider the broad investment implications of Donald Trump’s US election victory.
12 November 2024 Brendan Mulhern
Blog

UK Budget: Key takeaways

We assess the impact of the Budget on bond markets.
30 October 2024 Howard Cunningham
Blog

Global bond outlook: Is it back to the future?

How should bond investors approach market conditions similar to those last seen in the 1970s?
26 July 2024 Ella Hoxha

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that material ESG analysis is assessed may vary depending on the asset class and strategy involved. As of September 2022, the equity investment team performs ESG analysis on equity securities prior to their recommendation. ESG analysis is not performed for all fixed-income securities. The portfolio managers may purchase equity securities that are not formally recommended and for which ESG analysis has not been performed.

Key investment risks

  • Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
  • Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on the value of the strategy.
  • Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.
  • Changes in interest rates & inflation risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.
  • Credit risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.
  • CoCos risk: Contingent Convertible Securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.
  • Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.