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i shares GBP index linked gilts ETF - what value?
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farmer ted
Posted: 23 September 2010 09:02:55(UTC)
#1

Joined: 14/07/2009(UTC)
Posts: 2
This fund looks interesting however the face value of the underlying assets is unclear. With no indication of the comparison between the offer price and the underlying face value of the assets how can one judge the attractiveness of the offer?

To buy into an index linked offer at 100% of the face value is good but if it were 130% that would decrease the attractiveness somewhat. So is there a way of finding the undeflying face value of such a mixed fund??
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Frank Talbot (Citywire Research)
Posted: 23 September 2010 09:49:24(UTC)
#2

Joined: 12/07/2010(UTC)
Posts: 7
Hello Ted,

iShares has very good reporting of what the underlying index is, and provides full details on their site. In this instance it tracks the Barclays Capital UK Government Inflation-Linked Bond Index.

Below is the link that will take you to their page all about it. If you click the 'holdings' tab, that's where you'll find the detail.

http://uk.ishares.com/en/pc/funds/INXG

I would suggest being mindful of any rolling charges that your platform or online broker may impose, in addition to the annual costs from the provider, as some treat them as shares and this could be as much as £50 a year.

Good luck,

Frank


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