L&G Sterling Corporate Bond Index

A fund that looks to track the performance of Sterling corporate bonds of investment grade quality

The fund aims to track the Markit iBoxx Sterling Non-Gilts ex BBB Index, which contains sterling-denominated corporate bonds with credit ratings of A or higher, with up to 5% in gilts. The tracker will hold 70-100% of the bonds in the index rather than full physical replication due to liquidity issues, the fund will utilise a variety of optimisation techniques to deliver the return characteristics of the reference benchmark. We like the tracker as it gives us exposure to a diverse portfolio of liquid bonds through the universe and it has tracked the benchmark well historically. It is also relatively cheap with an ongoing charge of 0.14% as of January 2016.