UK Index-Linked Gilts Investment Strategy

Strategy highlights

: Aims to use analysis of inflation and inflation expectations to generate positive relative 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.¹
Performance benchmark: FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index²
Strategy inception: Composite inception: 1 January 1996
Strategy available through pooled UK vehicle: BNY Mellon Index Linked Gilt Fund

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: ¹ The target stated is for indicative purposes only and may be changed without notice. Targeted return is generally aspirational in nature, is not based on criteria and assumptions, and is not a guarantee of future returns.

² The FTSE Actuaries UK Index-Linked Gilts Over 5 Years Index is used as a comparator for this strategy. The strategy does not aim to replicate either the composition or the performance of the performance benchmark.

Strategy factsheet

Performance and commentary for the last quarter.

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Investment team

The strategy is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.

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Howard Cunningham

Portfolio manager, Fixed Income team

Jon Day

Portfolio manager, Fixed Income team

Trevor Holder

Portfolio manager, Fixed Income team

Ella Hoxha

Head of Fixed Income

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.

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.