Enhanced Gilt Fund
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Investment Manager:
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Close Investments Limited
(Appointed in August 2006)
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Launch Date:
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20 October 2003
(A Distributing Share Class*)
10 May 2004
(B Distributing Share Class*)
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Sub Fund Adviser:
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Mark Parry
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Investment Policy
The Enhanced Gilt Fund is designed to have a similar duration and yield as the FTSE Actuaries Government Securities UK Gilts All Stocks Index TR. The total return of the Fund may be enhanced by premium income generated by the writing of covered call options. The sale of over-the-counter covered call options based on the securities held within the investment portfolio may be utilised to seek to enhance the total return of the fund.
Investment Objective
The investment objective of the Sub Fund is to provide a level of income with stability of capital growth. In seeking to achieve the Sub-Fund’s investment objective, the Sub-Fund will invest in UK Government bonds, which may be fixed, or floating rate, primarily quoted on stock markets in the United Kingdom. The Sub-Fund will be actively managed. As UK gilts are rated AAA, the Sub-Fund will only hold debt securities rated at that investment grade (Aa by Moody’s or AAA by Standard & Poors). With the exception of permitted investments in unlisted securities, investment by the Sub-Fund is restricted to the Recognised Exchanges listed from time to time under “Recognised Exchanges and Markets” in Appendix V of the Prospectus.
Benchmark
The Sub-Fund will not specifically target a benchmark in either a geographical or currency allocation. However, the FTSE Actuaries Government Securities UK Gilts All Stocks Index TR, which is one of the FTSE Actuaries Bond Indices for British Government Securities, can be used as an index for performance comparison purposes only.
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