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.
OEICs and Unit Trusts
OEICs and Unit Trusts
|Name||1 Year (%)||3 Years (%)||5 Years (%)||Discount||NAV|
|GCP Asset Backed Income Fund Limited Ord NPV||4.52||-||-||3.46||101.49||Buy|
|GCP Infrastructure Investments Ld Ord 1P||-3.06||22.10||51.62||7.88||112.35||Buy|
|Hadrians Wall Secured Investments Limited Ord NPV||-0.38||-||-||2.54||98.50||Buy|
|ICG-Longbow Senior Secured UK Property Debt Investments Limited||8.90||20.83||29.93||1.93||100.80||Buy|
|RM Secured Direct Lending Plc ORD 1P||3.93||-||-||3.39||98.17||Buy|
|The City of London Investment Trust 10 1/4% Deb Stk 2020||-7.09||-10.20||-11.75||-||-||Buy|
|UK Mortgages Ltd Ord||-4.25||-||-||-2.10||86.57||Buy|
|Name||6 Months (%)||1 Year (%)||3 Years (%)||5 Years (%)||Currency||Sector|
|Boost Gilts 10Y 3x Leverage Daily ETP||-3.15||-8.76||19.51||-||GBX||Fixed Int - GBP Long Maturity||Buy|
|Boost Gilts 10Y 3x Short Daily ETP||1.36||5.33||-28.34||-||GBX||Fixed Int - GBP Long Maturity||Buy|
|LYXOR Core FTSE Actuaries UK Inflation-Linked Gilts (DR) UCITS ETF D GBP||-1.76||-6.07||-||-||GBP||Fixed Int - GBP Index Linked||Buy|
|LYXOR UK£ 10Y Inflation Expectations UCITS ETF C GBP||-0.88||-1.12||-||-||GBP||Fixed Int - GBP Index Linked||Buy|
|Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF D||-0.39||-1.22||-||-||GBP||Fixed Int - GBP Government||Buy|
|Pimco Sterling Short Maturity Source UCITS ETF||0.17||0.35||2.03||3.17||GBP||Fixed Int - GBP Short/ Medium Maturity||Buy|
|SPDR Bloomberg Barclays UK Gilt UCITS ETF GBP||-0.19||-2.30||7.90||18.35||GBP||Fixed Int - GBP Government||Buy|
|SPDR Bloomberg Barclays 1-5 Year Gilt UCITS ETF||-0.52||-1.44||1.65||3.73||GBP||Fixed Int - GBP Short/ Medium Maturity||Buy|
|SPDR Bloomberg Barclays 15+ Year Gilt UCITS ETF||0.53||-2.58||14.49||36.68||GBP||Fixed Int - GBP Long Maturity||Buy|
|Vanguard UK Gilt UCITS ETF||-0.26||-2.40||8.67||19.75||GBP||Fixed Int - GBP Government||Buy|
|iShares Core UK Gilts UCITS ETF GBP||-0.13||-2.19||8.50||18.37||GBP||Fixed Int - GBP Government||Buy|
|iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP||-0.43||-1.31||1.83||3.60||GBP||Fixed Int - GBP Government||Buy|
|iShares £ Index-Linked Gilts UCITS ETF GBP||-1.78||-6.21||15.74||30.85||GBP||Fixed Int - GBP Index Linked||Buy|
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