Royal London BlackRock Euro Government Bond Index Fund

The RL BlackRock Euro Government Bond Index Fund mainly invests in euro-denominated government bonds from the EMU market. It is passively managed and aims to track the FTSE EMU Government Bond Index. The fund’s holdings are concentrated in sovereign issuers such as Germany, France and the Netherlands.

The RL BlackRock Euro Government Bond Index Fund is a passive fund, meaning it is designed to mirror the performance of its benchmark rather than try to beat it. It uses the FTSE EMU Government Bond Index as its reference point. This approach typically means the fund holds a broad basket of government bonds in line with the index.

The RL BlackRock Euro Government Bond Index Fund is aimed at investors seeking exposure to euro government bonds over a medium-term horizon. The factsheet says it may be suitable for a medium-term investment horizon of 3-5 years, while also listing a recommended horizon of at least 7 years. Because it has high bond exposure, it is expected to be less volatile than equities, meaning its value may move around less than shares.

The RL BlackRock Euro Government 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 or cash flows are linked to different currencies. Although the fund invests in euro-denominated bonds, investors should still be aware that bond prices can fall as well as rise.

The RL BlackRock Euro Government Bond Index Fund has exposure across several EMU countries, including France, Italy, Germany, Spain, Belgium, the Netherlands, Austria, Portugal and Ireland, with other holdings also listed. Its top holdings include German, French and Dutch government bonds. This shows the fund is concentrated in sovereign debt rather than corporate bonds or other asset classes.