UK index-linked gilts funds must invest at least what percentage of assets in UK index-linked gilts?

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Multiple Choice

UK index-linked gilts funds must invest at least what percentage of assets in UK index-linked gilts?

Explanation:
When a fund labels itself as a UK index-linked gilts fund, it needs to maintain a strong focus on that specific asset class. The minimum in UK index-linked gilts must be 80% of assets. This level keeps the fund's performance aligned with the inflation-linked gilt index while still allowing up to 20% to be held in cash or other assets to handle liquidity needs, redemptions, or cost management without drifting too far from the intended exposure. The remaining flexibility helps with practical fund operations while preserving the fund’s core objective of tracking the index.

When a fund labels itself as a UK index-linked gilts fund, it needs to maintain a strong focus on that specific asset class. The minimum in UK index-linked gilts must be 80% of assets. This level keeps the fund's performance aligned with the inflation-linked gilt index while still allowing up to 20% to be held in cash or other assets to handle liquidity needs, redemptions, or cost management without drifting too far from the intended exposure. The remaining flexibility helps with practical fund operations while preserving the fund’s core objective of tracking the index.

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