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L&G All Stocks Index Linked Gilt Index - Bronze

FUND RESEARCH UPDATE: Fund Rating downgraded to Bronze

Jose Garcia Zarate 9 February, 2016 | 7:28PM
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We have downgraded the Morningstar Analyst Rating™ for L&G All Stocks Index Linked Gilt Index to Bronze. The fund previously held a Silver rating. We continue to have a positive view on factors such as the fund’s price, its tracking accuracy, and the parent company’s commitment to the provision of passive investing solutions. However, after careful reconsideration, we have concluded that the heavily long-dated nature of the underlying market exposes investors to a rather volatile return profile over a market cycle. In particular, a rules-based passive fund tracking this market would be particularly vulnerable to the downside relative to category peers that have the discretion to tweak duration. As such, we feel a Bronze rating reflects more accurately our conviction of this fund’s ability to outperform its category peers over a full market cycle.

See the latest Morningstar fund rating news here.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Jose Garcia Zarate

Jose Garcia Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe