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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 Bloomberg Barclays US Mortgage Backed Securities 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 measures the performance of US Dollar-denominated mortgage backed securities (MBS) issued by US government agencies, Ginnie Mae (GNMA), Fannie Mae (FNMA) and Freddie Mac (FHLMC). MBS in the Index must have a remaining weighted average maturity (i.e. the average time remaining until they become due forrepayment weighted by mortgage value) of at least one year. They will pay income according to fixed rates of interest, have a minimum outstanding of $1 billion and will, at the time of inclusion in the Index, be investment grade (i.e. meet a specified level of creditworthiness). 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 benchmark index and also the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes.
- Leverage -
- Currency hedgingNo