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 Acc8.8726.8865.55283.473.83Buy
AXA Framlington Managed Income Z Acc7.5522.4155.43283.473.52Buy
AXA Sterling Strategic Bond Z Acc13.8228.8336.61228.081.80Buy
AXA Sterling Strategic Bond Z Gr Acc14.4530.8540.30228.081.80Buy
AXA Sterling Credit Short Duration Bond R Acc2.985.5513.53486.751.10Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc3.657.8617.75486.751.60Buy
AXA Sterling Credit Short Duration Bond Z Acc3.286.5915.48486.751.60Buy
Aberdeen Sterling Government Bond A Acc12.5425.4625.63144.090.10Buy
Aberdeen Sterling Government Bond I Acc12.9826.9928.11144.090.60Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc20.9442.3865.7325.002.50Buy
Aberdeen Sterling Long Dated Government Bond I Acc24.6861.2366.5751.731.20Buy
Aberdeen Sterling Long Dated Government Bond K Acc24.8758.7064.4351.731.40Buy
Aberdeen Sterling Short Term Government Bond I Acc1.993.95-108.510.20Buy
Aberdeen Sterling Short Term Government Bond A Acc1.522.593.07108.51-Buy
Alliance Trust Monthly Income Bond P Acc8.7318.8447.96245.065.76Buy
Alliance Trust Monthly Income Bond P Gr Acc10.1222.8255.73245.065.76Buy
Alliance Trust Monthly Income Bond B Acc8.5117.9246.72245.065.76Buy
Alliance Trust Monthly Income Bond B Gr Acc9.8221.9855.38245.065.76Buy
Artemis Strategic Bond I Monthly Acc8.2118.2545.20955.924.13Buy
Artemis Strategic Bond I Quarterly Acc8.2118.5246.74955.924.13Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc8.8626.8965.77283.474.00Buy
AXA Framlington Managed Income Z Inc7.5622.6055.94283.473.70Buy
AXA Sterling Credit Short Duration Bond Z Inc3.426.7615.38486.751.60Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc3.497.7218.00486.751.60Buy
Alliance Trust Monthly Income Bond P Inc8.7018.7147.77245.065.79Buy
Alliance Trust Monthly Income Bond P Gr Inc9.9722.6555.92245.065.79Buy
Alliance Trust Monthly Income Bond B Inc8.4317.8546.62245.065.79Buy
Alliance Trust Monthly Income Bond B Gr Inc9.8322.0455.43245.065.79Buy
Allianz Gilt Yield I Inc14.9928.9930.761,139.731.15Buy
Artemis High Income I Monthly Inc6.7918.3761.931,161.755.81Buy
Artemis High Income I Inc6.8018.8364.611,161.755.81Buy
Artemis Strategic Bond I Quarterly Inc8.2418.3145.36955.924.13Buy
Artemis Strategic Bond I Monthly Inc8.2518.5746.89955.924.13Buy
Baillie Gifford Active Gilt Plus B Inc11.4227.1030.4298.631.00Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc24.3753.8066.80113.100.50Buy
Baillie Gifford Active Long Gilt Plus B Inc23.1057.5562.0052.891.70Buy
Baillie Gifford Investment Grade Bond B Inc11.7827.4145.49227.753.20Buy
BlackRock Corporate Bond Tracker D Inc13.5928.4245.451,519.272.77Buy
BlackRock UK Gilts All Stocks Tracker D Inc13.6630.5631.554,255.541.67Buy
CF Canlife Corporate Bond C Inc GBP11.6524.2137.74334.442.59Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
CQS New City High Yield Fund Limited Ord NPV11.3316.1641.984.5456.44Buy
GCP Infrastructure Investments Ld Ord 1P15.5649.7377.7721.79107.73Buy
Hadrians Wall Secured Investments Limited Ord NPV----97.95Buy
ICG-Longbow Senior Secured UK Property Debt Investments Limited2.2215.06-0.57100.18Buy
UK Mortgages Ltd Ord-5.35--3.9293.34Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Lyxor FTSE Actuaries UK Inflation-Linked Gilts (DR) UCITS ETF GBP18.7722.5751.3762.50GBPFixed Int - GBP Index LinkedBuy
Pimco Sterling Short Maturity Source UCITS ETF0.851.102.274.43GBPFixed Int - GBP Short/ Medium MaturityBuy
Vanguard UK Gilt UCITS ETF10.3314.6333.52-GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP9.4913.5730.7934.48GBPFixed Int - GBP Investment GradeBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP1.352.726.257.59GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP19.4923.4751.5962.76GBPFixed Int - GBP Investment GradeBuy

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