Benchmark indices

The fund’s exposure to stock and bond markets shall reflect the benchmark indices exposure to the markets. Some deviation from the benchmark is allowed to enable active management of the fund.

The real estate index measures property performance across 15 European countries. These are Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom. The fund’s benchmark may over time expand to include other countries in the IPD’s global property index, such as Australia, Canada, Japan, Korea, New Zealand, South Africa and the United States.

Broad selection of assets

The fund’s benchmark indices represent a broad selection of the world’s stocks, bonds and real estate. The stock and bond indices are updated daily to reflect changes in the market value of the securities in the benchmarks. The real estate index is updated less frequently because property isn’t directly traded on exchanges, making it more difficult to obtain price information for an index. Market values and weightings in the real estate index are based on property appraisal values, IPD’s estimate of the market size and IPD’s current market coverage. IPD’s databank is made up of records of properties owned by investors submitting information to IPD. The index is updated for each calendar year and published in May the following year.

The fund’s equity and fixed-income management seek to achieve a return that’s higher than the return on their benchmark indices