UK Bonds

UK bonds will focus on corporate and government bonds issued in sterling, mainly from UK-based entities. These will tend to come in three main guises: government bonds – those issued by the UK government; investment grade corporate bonds - those issued by high quality blue chip companies; and 'high yield' –- bonds issued by higher risk companies, with a greater chance of defaulting on their payments.
Each type of bond will perform differently in different types of economic environment. In general, bonds where there is not much 'credit risk' , which means not much risk of default such as government bonds, will tend to be more sensitive to movements in interest rates. They may also be more sensitive to rises in inflation – higher inflation will make the fixed income they provide look less attractive. As a result, government bonds and investment grade corporate bonds will tend to do better at a time of weaker economic growth, where there is a risk of lower inflation or deflation. High yield bonds tend to behave more like equities and do better at times of economic growth, when default rates for companies are lower. 
Bonds can be an important source of income for investors, with higher-risk bonds generally paying a higher income than government or blue chip corporate bonds.

Introduction to UK Bonds

UK bonds will focus on corporate and government bonds issued in sterling, mainly from UK-based entities. These will tend to come in three main guises: government bonds – those issued by the UK government; investment grade corporate bonds - those issued by high quality blue chip companies; and 'high yield' –- bonds issued by higher risk companies, with a greater chance of defaulting on their payments.

Each type of bond will perform differently in different types of economic environment. In general, bonds where there is not much 'credit risk' , which means not much risk of default such as government bonds, will tend to be more sensitive to movements in interest rates. They may also be more sensitive to rises in inflation – higher inflation will make the fixed income they provide look less attractive. As a result, government bonds and investment grade corporate bonds will tend to do better at a time of weaker economic growth, where there is a risk of lower inflation or deflation. High yield bonds tend to behave more like equities and do better at times of economic growth, when default rates for companies are lower. 

Bonds can be an important source of income for investors, with higher-risk bonds generally paying a higher income than government or blue chip corporate bonds.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change.

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Acc14.0123.4558.87357.344.95Buy
AXA Framlington Managed Income Z Acc12.9719.7949.96357.344.42Buy
AXA Sterling Strategic Bond Z Acc7.4021.2628.71209.521.80Buy
AXA Sterling Strategic Bond Z Gr Acc7.7322.8731.89209.521.80Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc3.276.9514.60577.171.70Buy
AXA Sterling Credit Short Duration Bond Z Acc2.995.8812.50577.171.70Buy
Aberdeen Sterling Government Bond I Acc5.2619.2520.36181.290.60Buy
Aberdeen Sterling Long Dated Corporate Bond I Acc12.3029.7650.5525.352.40Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc12.4329.9050.7125.352.50Buy
Aberdeen Sterling Long Dated Government Bond I Acc11.5544.4149.9745.671.40Buy
Aberdeen Sterling Long Dated Government Bond K Acc10.2841.4746.1745.671.50Buy
Aberdeen Sterling Opportunistic Corporate Bond I Acc7.859.2022.25599.772.60Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Acc8.2310.6824.70599.772.60Buy
Aberdeen Sterling Short Term Government Bond I Acc0.633.00-98.35-Buy
Alliance Trust Monthly Income Bond P Acc12.4916.7937.84231.915.74Buy
Alliance Trust Monthly Income Bond P Gr Acc13.4820.5544.60231.915.74Buy
Alliance Trust Monthly Income Bond B Acc12.1515.8336.18231.915.74Buy
Alliance Trust Monthly Income Bond B Gr Acc13.4519.8544.17231.915.74Buy
Artemis Strategic Bond I Monthly Acc9.9414.6436.611,009.893.97Buy
Artemis Strategic Bond I Quarterly Acc10.0414.7537.901,009.893.97Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc13.9023.5058.93357.345.72Buy
AXA Framlington Managed Income Z Inc12.9519.7550.20357.344.56Buy
AXA Sterling Credit Short Duration Bond Z Inc2.995.9712.30577.171.70Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc3.126.8214.64577.171.70Buy
Aberdeen Sterling Government Bond I Inc5.2419.24-181.290.60Buy
Aberdeen Sterling Opportunistic Corporate Bond I Inc7.879.2222.11599.772.60Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Inc8.2710.7424.75599.772.60Buy
Aberdeen Sterling Short Term Government Bond I Inc0.622.94-98.35-Buy
Alliance Trust Monthly Income Bond P Inc12.4416.6037.73231.915.76Buy
Alliance Trust Monthly Income Bond P Gr Inc13.3720.3544.81231.915.78Buy
Alliance Trust Monthly Income Bond B Inc12.1415.8536.17231.915.76Buy
Alliance Trust Monthly Income Bond B Gr Inc13.4119.8144.15231.915.77Buy
Allianz Gilt Yield I Inc6.2520.4823.431,218.131.36Buy
Artemis High Income I Monthly Inc11.4315.6852.781,154.995.54Buy
Artemis High Income I Inc11.5615.9054.981,154.995.51Buy
Artemis Strategic Bond I Quarterly Inc10.0614.8036.851,009.893.97Buy
Artemis Strategic Bond I Monthly Inc9.9414.6937.891,009.893.98Buy
Baillie Gifford Active Gilt Plus B Inc5.3621.5223.6787.480.90Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc17.4843.8751.31118.490.70Buy
Baillie Gifford Active Long Gilt Plus B Inc10.2343.0346.8448.901.60Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Pimco Sterling Short Maturity Source UCITS ETF0.181.022.093.86GBPFixed Int - GBP Short/ Medium MaturityBuy
Vanguard UK Gilt UCITS ETF-3.576.6826.13-GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP-3.805.6123.4526.83GBPFixed Int - GBP GovernmentBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP-0.241.205.676.41GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP-3.1316.5342.0250.54GBPFixed Int - GBP Index LinkedBuy

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