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 Acc10.7524.1065.90284.425.05Buy
AXA Framlington Managed Income Z Acc9.3619.7756.02284.424.01Buy
AXA Sterling Strategic Bond Z Acc6.6619.9326.31214.751.90Buy
AXA Sterling Strategic Bond Z Gr Acc7.2221.7329.65214.751.90Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc3.126.8216.76501.741.60Buy
AXA Sterling Credit Short Duration Bond Z Acc2.745.7414.38501.741.60Buy
Aberdeen Sterling Government Bond I Acc5.2717.6816.83158.091.00Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc8.7928.3050.3124.042.70Buy
Aberdeen Sterling Long Dated Government Bond I Acc11.5143.8741.3342.821.30Buy
Aberdeen Sterling Long Dated Government Bond K Acc10.2439.8737.6942.821.50Buy
Aberdeen Sterling Short Term Government Bond I Acc0.792.71-102.760.30Buy
Alliance Trust Monthly Income Bond P Acc5.9514.4841.79234.855.81Buy
Alliance Trust Monthly Income Bond P Gr Acc7.2918.4749.20234.855.80Buy
Alliance Trust Monthly Income Bond B Acc5.7013.5640.66234.855.81Buy
Alliance Trust Monthly Income Bond B Gr Acc7.0017.6348.95234.855.81Buy
Artemis Strategic Bond I Monthly Acc6.5814.4042.23962.174.22Buy
Artemis Strategic Bond I Quarterly Acc6.5814.5543.63962.174.22Buy
Baillie Gifford Active Gilt Plus B Acc5.9820.2519.8592.211.10Buy
Baillie Gifford Active Long Gilt Plus B Acc10.5640.6238.2346.461.80Buy
BlackRock Corporate Bond Tracker D Acc7.1920.3838.361,643.392.82Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc10.7424.1566.18284.425.27Buy
AXA Framlington Managed Income Z Inc9.4419.9556.60284.424.22Buy
AXA Sterling Credit Short Duration Bond Z Inc2.745.7614.25501.741.60Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc2.986.7616.88501.741.60Buy
Alliance Trust Monthly Income Bond P Inc5.9314.3841.69234.855.86Buy
Alliance Trust Monthly Income Bond P Gr Inc7.2518.4149.55234.855.86Buy
Alliance Trust Monthly Income Bond B Inc5.7313.6340.65234.855.86Buy
Alliance Trust Monthly Income Bond B Gr Inc6.9717.6448.99234.855.86Buy
Allianz Gilt Yield I Inc6.3218.4618.591,132.941.29Buy
Artemis High Income I Monthly Inc5.5114.8658.641,124.345.65Buy
Artemis High Income I Inc5.9715.6661.741,124.345.63Buy
Artemis Strategic Bond I Quarterly Inc6.6114.4642.37962.174.22Buy
Artemis Strategic Bond I Monthly Inc6.6014.6143.73962.174.23Buy
Baillie Gifford Active Gilt Plus B Inc5.9420.2019.7992.211.10Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc18.5143.1950.85106.220.60Buy
Baillie Gifford Active Long Gilt Plus B Inc10.6140.5538.2646.461.80Buy
Baillie Gifford Investment Grade Bond B Inc7.5719.7339.76221.363.30Buy
BlackRock Corporate Bond Tracker D Inc7.0320.2538.251,643.392.83Buy
BlackRock UK Gilts All Stocks Tracker D Inc6.2221.5020.464,206.281.68Buy
CF Canlife Corporate Bond C Inc GBP6.2617.4433.18291.54-Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
CQS New City High Yield Fund Limited Ord NPV10.3214.1742.794.4155.79Buy
GCP Infrastructure Investments Ld Ord 1P11.2836.3469.7913.70109.67Buy
Hadrians Wall Secured Investments Limited Ord NPV----97.71Buy
ICG-Longbow Senior Secured UK Property Debt Investments Limited4.0217.48-0.09102.66Buy
UK Mortgages Ltd Ord-3.63--1.1193.46Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Pimco Sterling Short Maturity Source UCITS ETF0.490.942.174.43GBPFixed Int - GBP Short/ Medium MaturityBuy
Vanguard UK Gilt UCITS ETF1.727.7425.47-GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP1.086.6422.8523.03GBPFixed Int - GBP Investment GradeBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP0.541.945.505.84GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP14.7619.0942.0851.75GBPFixed Int - GBP Investment GradeBuy

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