Irish Life Inflation-Linked Bond

The Indexed Inflation Linked Bond Fund invests mainly in inflation-linked government bonds issued in the Eurozone. These securities are designed so their returns move with inflation, which means the fund aims to help protect buying power when prices rise. The fund is managed on a passive basis and seeks to track the ICE Euro HICPXT Inflation-Linked Government Index.

The Indexed Inflation Linked Bond Fund holds bonds whose payouts are linked to inflation in the Eurozone. If inflation rises, the bonds are designed to adjust so the investment is less affected by the erosion of purchasing power. In simple terms, inflation risk means that money can buy less in the future, and this fund is designed to help offset that effect.

The Indexed Inflation Linked Bond Fund focuses on Eurozone government issuers, with geographic allocation shown to France, Italy, Spain and Germany. That means the fund is concentrated in bonds from a limited set of European countries rather than investing globally. This can make the fund more sensitive to economic or political developments in the Eurozone.

The Indexed Inflation Linked Bond Fund aims to perform in line with its benchmark, the ICE Euro HICPXT Inflation-Linked Government Index. It is run as a passive fund, so the goal is to closely follow the index rather than try to beat it through active stock-picking or bond selection. Irish Life Investment Managers is the underlying investment manager.

Yes, the Indexed Inflation Linked Bond Fund may use securities lending to try to earn extra return for the fund. This can increase risk because securities are temporarily lent to other market participants, which adds exposure if something goes wrong with the borrower. The fund factsheet says this is done to seek additional return, but it may also increase the overall risk level.