The fund aims to provide income and capital growth. At least 95% of the fund will be invested in AAA rated bonds (i.e. the highest rating available from credit rating agencies) issued by governments, with at least 80% invested in bonds issued by the UK government. Government bonds generally offer a more stable alternative to equity markets, providing diversification and a relative safe haven in times of weaker risk appetite amongst investors. The fund will invest in bonds issued either in sterling, or in another currency and hedged back into sterling (to reduce or remove the risk of loss through currency movements). The fund may also invest in other financial instruments and hold cash on deposit. Derivatives may be used to reduce risk or manage the fund more effectively.
David Scammell (Started: Nov 1, 2004)
Schroder Unit Trusts Limited
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31 Gresham Street