The fund aims to track the Markit iBoxx Sterling Corporate 1-5 Index, which contains sterling-denominated corporate bonds with maturities between 1 and 5 years. The tracker will hold a sample of the bonds in the index rather than full physical replication due to liquidity issues and to reduce trading costs, and the fund will utilise a variety of optimisation and sampling techniques to deliver the return characteristics of the reference index. We like the tracker as it gives us exposure to a diverse portfolio of liquid bonds through the universe without taking much duration (interest rate risk) and it has tracked the benchmark well historically. It is also relatively cheap with an ongoing charge of 0.14% as of February 2016.