Royal London Short Duration Global Index Linked Fund M Inc

A Select 50 Fund - Fidelity insight

Category Global Inflation-Linked Bond - GBP Hedged

This fund can be held in an Investment ISA, SIPP and Investment Account

Last buy/sell price

105.20p/105.20p

arrow-down-0.10p (-0.09%)

Fund Code

ROSGI

BD050F0

GB00BD050F05

Prices updated as at 14 Nov 2024

Prices in GBX

Investment objective

The Fund’s investment objective is to achieve a total return over the medium term, which should be considered as a period of 3–5 years, by predominantly investing in short-duration (1-10 years) index-linked bonds. At least 80% of the Fund will be invested in index linked bonds with a duration of up to 10 years. These may include UK and global index linked government and corporate bonds that may be investment grade or non-investment grade. At least 70% of these investments will be made in the UK, North America and Europe, and will be sterling denominated or hedged back to sterling.

Important documents: Please ensure that you have read the Key Information Document/Technical Guide , Pre-sale Illustrations document & Doing Business with Fidelity document (incorporating the Fidelity Client Terms) and the fund information documents. These can be found within the Charges & documents section.

Our view

Why we like the fund: This fund is managed by an experienced manager with a long track record of running the strategy. The fund lends money to governments around the world, with the interest paid on the bonds linked to inflation. The loans are made over short periods (under five years usually) and this also helps reduce the fund's risk. The manager has displayed skill in running the strategy and the fairly low cost reduces the drag on modest expected gains. How to use the fund This is a government bond fund that should offer some protection against inflation. Although there are additional factors that will drive the performance of index-linked bonds other than inflation, all else being equal they will provide better protection against rising inflation than traditional bond funds. If central banks raise interest rates in response to rising inflation, most bond funds will lose value and an inflation-linked fund can be helpful in this environment. The fund is low risk, pays out an income and is partially protected from increases in inflation.

Important Information

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and(3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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