Royal London BlackRock US Equity Index Fund

The RL BlackRock US Equity Index Fund invests mainly in US equities and is designed to reflect the return of the US stock market. It is passively managed, so it aims to track the market rather than try to beat it. Its portfolio is concentrated in large US companies such as NVIDIA, Apple, Microsoft and Amazon. Because it focuses on equities, the fund can rise and fall in value more sharply than lower-risk assets.

The RL BlackRock US Equity Index Fund is an indexed fund that seeks to mirror the performance of the S&P 500 Net TR Index in EUR. It does this by investing through the underlying iShares US Equity Index Fund (IE) and using derivatives as part of its investment strategy. In simple terms, derivatives are financial contracts whose value depends on other investments, and they can be used to help the fund manage or replicate exposure. This approach means the fund is designed to deliver market-like returns rather than active stock selection.

The RL BlackRock US Equity Index Fund is suited to investors who want broad exposure to US equities and are comfortable with higher volatility. Royal London indicates a medium to long-term holding period of at least 7 years, which helps reduce the impact of short-term market swings. The fund may appeal to investors looking for growth and income from the US market without choosing individual stocks. It is not aimed at investors seeking stable capital or low volatility.

The RL BlackRock US Equity Index Fund carries market fluctuations risk, capital returns risk, currency risk, counterparty risk and liquidity risk. Market fluctuations risk means the value of the fund can move up and down with US share prices. Currency risk means changes in exchange rates can affect returns for investors when the fund's assets or benchmark are measured in a different currency. Counterparty risk means a financial partner involved in derivatives may fail to meet its obligations, while liquidity risk means the fund may not always be able to buy or sell investments quickly at a good price.

The RL BlackRock US Equity Index Fund is heavily exposed to major US mega-cap stocks, including NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Tesla and Berkshire Hathaway. Its sector exposure is broad, with information technology, consumer discretionary, industrials, financials and health care among the main areas. This means the fund is not limited to one industry, but it still reflects the composition of the US equity market. As a result, performance will be influenced by how the largest US companies and sectors perform.