Index-Linked Fund

The Fund aims to outperform the FTSE-A Government Securities Over 5 Year Index- Target 1 : FTSE Actuaries UK Index-Linked Gilts Linked Index (gross of fees) over the long term (5 consecutive years). This objective is to be treated as a target only and not as an assurance or guarantee of performance of the Fund. The Fund invests at least 50% of its total assets in fixed income securities (such as bonds) denominated in Sterling that are issued by the UK Government. These fixed income securities must be linked to an eligible index. The Fund is permitted to invest more than 35% and up to 100% of its scheme property in government and public securities issued or guaranteed by the Government of the UK (including the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales). The Fund may also invest in other fixed income securities, money-market instruments (i.e. debt securities with short term maturities) and cash.