Royal London BlackRock Euro Government Inflation-Linked Bond Index Fund

The RL BlackRock Euro Government Inflation Linked Bond Index Fund invests mainly in euro-denominated government bonds that are linked to inflation. It aims to mirror the performance of the BBG Barc Euro Government Inflation-Linked Bond Index. The fund therefore holds sovereign debt from countries such as France, Germany, Spain and Italy.

The RL BlackRock Euro Government Inflation Linked Bond Index Fund is passively managed, meaning it aims to track its benchmark rather than try to beat it through active stock selection. It does this by investing through the underlying iShares Euro Government Inflation-Linked Bond Index Fund (IE). This approach is designed to closely reflect the return of euro government inflation-linked bonds.

The RL BlackRock Euro Government Inflation Linked Bond Index Fund is described as suitable for a medium-term investment horizon of 3 to 5 years. It is expected to be less volatile than equities because it has high bond exposure. That means it may appeal to investors looking for bond-based exposure rather than the larger price swings often seen in shares.

The RL BlackRock Euro Government Inflation Linked Bond Index Fund is exposed to market fluctuations, capital returns risk, currency risk, counterparty risk, liquidity risk and sustainability risks. Currency risk means exchange-rate movements can affect returns when investments are linked to different currencies. Counterparty risk means a third party involved in a transaction may fail to meet its obligations.

The RL BlackRock Euro Government Inflation Linked Bond Index Fund is concentrated in euro-area government issuers, with holdings and geographic exposure including France, Germany, Spain, Italy and Ireland. Its top holdings are mainly sovereign bonds issued by those countries. This gives the fund a strong focus on European government debt rather than corporate bonds or global markets.