The fund will protect investors from «unexpected» UK inflation, while potentially maintaining lower price volatility and higher expected return through credit premium exposure, it explained. Dimensional said investors in index-linked gilts are subject to interest rate sensitivity and price volatility due to the small number of mostly longer-duration securities available. As a result, the fund will invest in short-duration UK gilts, both conventional and index-linked, to maintain potential lower price volatility, while providing exposure to short-duration investment grade corporate bon...
To continue reading this article...
Join now
Login
Read more on investmentweek.co.uk