After a couple of dull years (in line with bonds generally) this fund is currently up in excess of 10% (to end Jan 2007).  Though the fund discounts the likelihood of more rate cuts, if rates fall more sharply this will give a further boost to the fund in 2008.  As an international fund it can also benefit from currency swings.  It invests into government bonds rather than corporate bonds, so will not suffer if the outlook for corporate bond defaults deteriorates.

This is a core lower risk holding, though with additional currency risk, it can be a bit more volatile than a mainstream corporate bond fund. 

To maximise the total return from income and capital growth in the world bond markets through investment predominantly in Government and other public securities.