Diversified Bond Fund

Fund aim

The investment objective of the fund is to provide long-term investment growth through exposure to a diversified range of asset classes.

Comparator

FTSE Developed World Index – 50% GBP Hedged

We show the fund’s performance against the comparator indicated because the long-term expected rate of return of the fund is broadly similar to that of a developed market equity fund. The diversified nature of the fund means that it is expected to have less exposure than a pure equity fund to adverse equity market conditions. However, the fund may perform less strongly than a pure equity fund in benign or positive market conditions. The fund is additionally shown against a secondary comparator of the Bank of England Base Rate +3.75% per annum as our expected rate of return can also be illustrated using ‘risk-free returns’ plus an ‘equity risk premium’. The market consensus for the latter is accepted to be in the region of 3.5-4% per annum.