PMCs

Unit-Linked Life Insurance

Active GBP Collateralised and Corporates Fund

Fund aim

The fund aims to exceed the Markit iBoxx £ Collateralised and Corporates Index by 0.75% p.a. over rolling three years (before fees).

Fund characteristics

While the fund actively manages interest rate risk, it seeks to out-perform the benchmark principally through active management of credit risk. The fund has a duration of up to +/-2 years relative to its benchmark and a tracking error range of up to 3.0% p.a. The fund primarily invests in GBP, EUR and USD denominated fixed, floating rate, and inflation-linked instruments. In order to access greater investment opportunities, the fund allocates 70% to 100% to GBP and EUR denominated investment grade credit, and is also permitted to allocate a maximum of 15% of the portfolio to USD credit, hedged back to sterling. Additionally the fund can hold up to 5% in sub-investment grade credit. The fund has the ability to use derivatives for more efficient portfolio management.

Fund facts

Fund size£35.0m
Base currencyGBP
DomicileUnited Kingdom
Share class launch30/04/08
Modified duration6.44 years
Gross redemption yield (unhedged)5.00%
As at 31 Dec 2023

Benchmark

Markit iBoxx £ Collateralised and Corporates Index

Performance

Source: LGIM. Performance is reported in GBP based on weekly mid-market prices before the deduction of fees.
With effect from 25th January 2022 the Fund’s permitted exposure to bonds with minimum credit ratings of BB- increased from 5% to 10%.
Past performance is not a guide to future performance and the value of investments can go down as well as up.
Share class launch date:30 Apr 2008
Benchmark:Markit iBoxx £ Collateralised and Corporates Index
Share class launch date:30 Apr 2008
Benchmark:Markit iBoxx £ Collateralised and Corporates Index
    Share class launch date:30 Apr 2008
    Benchmark:Markit iBoxx £ Collateralised and Corporates Index

    Portfolio breakdown

    As at 31 Dec 2023

    Top 10 issuers26.6%
    Rest of portfolio73.4%
    No. of issuers114

    Top 10 issuers (%)

    United Kingdom6.0
    CK Hutchison Holdings2.8
    BNP Paribas2.5
    Banco Santander2.4
    Credit Agricole Group2.4
    E.ON2.2
    National Grid2.2
    UBS Group2.2
    Credit Mutuel2.1
    Hammerson1.9

    Currency (%)

    GBP
    96.6
    EUR
    1.9
    USD
    1.4

    All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Fund managers

    Ian Hutchinson headshot

    Ian Hutchinson

    Ian leads the UK active Credit team having joined LGIM in 2004. He started in 1998 at Standard & Poor’s as a Eurobond analyst. Ian is IMC qualified and a CFA charterholder. He holds a degree in International Relations from the University of Sussex.

    James MacIntyre-Ure headshot

    James MacIntyre-Ure

    James is a UK Credit senior portfolio manager in the Pan European Credit team, having joined LGIM in 2012. He is IMC qualified and a CFA charterholder. He holds a BSc (Hons) in Investment and Financial Risk Management from Cass Business School.

    Literature

    Prices

    Units can be purchased, sold or switched on a designated dealing day. This fund is offered on a weekly close basis. Further information is available in the relevant operational procedures sheet and the Description of Funds.

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    Monthly price history

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    Please note that a maximum of 10 years price history is available.