€0.02
(0.76%)
Create an alert
Stocks and Shares ISAObjective
The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the Markit iBoxx EUR Eurozone 20yr Target Duration Index, the Fund’s benchmark index (Index). The Share Class, via the Fund, aims to invest so far as possible and practicable in the fixed income (FI) securities (such as bonds) that make up the Index and comply with its credit rating requirements. If the credit ratings of the FI securities are downgraded, the Fund may continue to hold these until they cease to form part of the Index and it is practicable to sell the position. The Index is designed to provide a representation of FI securities that provide an aggregate duration of around 20 years, i.e. between 19 and 21 years on every monthly rebalancing. Duration reflects the time it takes for the price of a bond at a particular point in time to be repaid by the payments made by the bond (e.g. the coupon and/or final payment) to the investor. The duration of a bond will be affected by changes in yields, for instance, when yields increase duration typically decreases and vice versa. Accordingly, the higher the duration of a bond, the higher its sensitivity to a change in interest rates. As interest rates change, the price of a bond and its duration will change. The eligible bonds for the Benchmark Index are selected from the Markit iBoxx EUR Eurozone 15+ Index, which comprises fixed rate and zero coupon bonds maturing 15 years or more in the future and issued by a central government of a member of the Eurozone and denominated in Euro or in a pre-Euro currency. Only bonds that have a minimum rating of AA- or better by Fitch, Moody’s and Standard & Poor’s Ratings Services are eligible for inclusion in the Benchmark Index. The Benchmark Index is always comprised of bonds from at least six different issues and the weight of each individual issue is capped at 30%. The Fund uses optimising techniques to achieve a similar return to its benchmark index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may also be used for direct investment purposes. The Fund may also engage in short term secured lending of its investments to certain eligible third parties. This is used as a means of generating additional income and to off-set the costs of the Fund. Your shares will be distributing shares (i.e. income will be paid on the shares annually).
- Leverage -
- Currency hedgingNo