Irish Life Indexed Inflation-Linked Bond

The Indexed Inflation Linked Bond Fund invests in index-linked government bonds issued in the Eurozone. Its holdings are concentrated in countries such as France, Italy, Spain and Germany. Because the bond payments are linked to inflation, the fund is designed to help protect the investment’s buying power if prices rise.

The Indexed Inflation Linked Bond Fund aims to perform in line with the ICE Euro HICPXT Inflation-Linked Government Index. It uses a passive investment style, so it is designed to track the benchmark rather than try to beat it. This means the fund follows the index’s composition and return pattern as closely as possible.

The Indexed Inflation Linked Bond Fund may suit an investor looking for inflation protection within a Eurozone government bond portfolio. It is aimed at investors who want bond exposure linked to Eurozone inflation rather than shares or other higher-risk assets. The fund may be a fit for someone comfortable with the risks of government bond investing and index tracking.

The Indexed Inflation Linked Bond Fund can be affected by movements in inflation and government bond markets, as well as the performance of the underlying index. It also uses securities lending, which can increase risk even though it may help generate extra return. Securities lending means the fund temporarily lends out securities to earn additional income, but that adds some counterparty risk, which is the risk that the borrower does not return what was lent.