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iShares Overseas Government Bd Index Class D - Income (GBP)

Sell:103.84p Buy:103.84p Change: 0.12p (0.12%)
Prices as at 13 August 2025
Sell:103.84p
Buy:103.84p
Change: 0.12p (0.12%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 13 August 2025
Sell:103.84p
Buy:103.84p
Change: 0.12p (0.12%)
Prices as at 13 August 2025
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This fund focuses on bonds issued by governments of developed countries, excluding the UK. It’s managed by BlackRock, who have a great record of running tracker funds. We think this fund could be a good addition to a more conservative portfolio or could diversify one that is focused on shares or corporate bonds.

While we view the fund as a useful way to invest in overseas government bonds, it’s not on the Wealth Shortlist as it already features funds that offer investments in this part of the market and are run by managers we rate highly.

Our view on the sector

Funds in this sector can invest in government and corporate bonds issued globally. And they can often be denominated in overseas currencies. Foreign currencies boost performance if sterling weakens, like it did after the UK voted to leave the European Union in 2016, but the reverse is true when sterling strengthens. These funds can be very different from each other. Some focus on generating income, others try to shelter investors' money during the bad times and might not generate any income. We think there are only a handful of investors with the skill to successfully manage a fund in this sector.

Performance Analysis

The fund has tracked its benchmark closely since it launched in 2011. As expected of index funds, it’s fallen behind the benchmark over the long term because of the costs involved in running the fund. However, the management tools used by the team have helped to keep performance tight to the index.

The team uses currency hedging which means overseas currency bonds are converted back to sterling. By hedging, investors could experience less extreme price movements over time, which could help smooth potential returns. Although, currency hedging is done through derivatives which adds risk.

Given BlackRock's size, experience and expertise running index tracker funds, we expect the fund to continue to track the index well in future, though there are no guarantees.

Investment Philosophy

Tracker funds are one of the simplest ways to invest. The fund aims to match the performance of an index, rather than beat it. Factors like withholding taxes, dealing commissions and spreads, and the cost of running the fund all drag on performance. The team work out the best way to match the performance of the index while keeping costs to a minimum. If the fund's costs are low, it's likely to track the index more closely over time.

Process and Portfolio Construction

This fund invests in almost every bond in the J.P. Morgan Global Government Bond Index ex UK. This is known as partial replication, which could help the fund track the index closely without incurring the cost of holding every bond. It may invest more than 35% in bonds issued by a single government. The fund can lend some of its investments to others in exchange for a fee in a process known as stock lending. This offsets some of the costs involved with running the fund but adds risk.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

12/08/20 to 12/08/21 12/08/21 to 12/08/22 12/08/22 to 12/08/23 12/08/23 to 12/08/24 12/08/24 to 12/08/25
Annual return n/a n/a n/a n/a 2.03%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now