The Sub-Fund aims to match the performance of the Citigroup EMU Government Bond IndexSM (EGBI) ("the Index"). The Sub-Fund is constructed to mirror the Index and to provide income and long-term capital growth by investing in European Economic and Monetary Union ("EMU") government fixed income securities.
The Sub-Fund utilises a passive investment approach, called indexing, which attempts to replicate the investment performance of the Index through statistical procedures. Bonds are selected based on their characteristics to create a portfolio that profiles the Index. Bonds in which the Sub-Fund will invest will be of investment grade as determined by Standard & Poor's Rating Group. The Sub-Fund does not employ traditional methods of active investment management such as actively buying and selling bonds based upon interest rate bets.