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 Acc9.1622.8362.61405.104.81Buy
AXA Framlington Managed Income Z Acc8.7519.7254.59405.104.33Buy
AXA Sterling Strategic Bond Z Acc-1.9718.3824.81206.401.60Buy
AXA Sterling Strategic Bond Z Gr Acc-1.8519.6727.63206.401.60Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc1.436.7112.57725.591.30Buy
AXA Sterling Credit Short Duration Bond Z Acc1.295.8410.71725.591.30Buy
AXA Sterling Buy And Maintain Credit Z0.4020.61-154.792.60Buy
Aberdeen Sterling Government Bond I Acc-3.6115.8217.61162.840.60Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc-1.5227.2444.8425.962.50Buy
Aberdeen Sterling Long Dated Government Bond I Acc-5.2834.4044.5444.111.20Buy
Aberdeen Sterling Long Dated Government Bond K Acc-6.3633.2640.7744.111.40Buy
Aberdeen Sterling Opportunistic Corporate Bond I Acc4.0510.9222.83455.902.80Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Acc4.1012.2125.15455.902.80Buy
Aberdeen Sterling Short Term Government Bond I Acc-0.902.392.1599.980.20Buy
Artemis Strategic Bond I Monthly Acc6.3317.0437.471,128.663.95Buy
Artemis Strategic Bond I Quarterly Acc6.4217.1338.531,128.663.95Buy
Baillie Gifford Active Gilt Plus B Acc-2.9217.6618.8489.461.20Buy
Baillie Gifford Active Long Gilt Plus B Acc-6.3833.2938.8749.901.80Buy
CF Canlife Corporate Bond C Acc GBP2.3818.8631.04304.643.76Buy
F&C Strategic Bond C Acc1.544.1418.19133.191.00Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc9.1722.9262.77405.105.49Buy
AXA Framlington Managed Income Z Inc8.8119.7954.82405.104.50Buy
AXA Sterling Credit Short Duration Bond Z Inc1.335.9610.50725.591.30Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc1.386.5912.41725.591.30Buy
Aberdeen Sterling Government Bond I Inc-3.6215.8017.62162.840.60Buy
Aberdeen Sterling Opportunistic Corporate Bond I Inc4.1710.9322.70455.902.80Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Inc4.2612.2324.41455.902.80Buy
Aberdeen Sterling Short Term Government Bond I Inc-0.892.332.1199.980.20Buy
Allianz Gilt Yield I Inc-2.9018.9719.731,404.281.26Buy
Artemis High Income I Monthly Inc8.3916.8853.011,215.035.24Buy
Artemis High Income I Inc8.5117.0254.831,215.035.29Buy
Artemis Strategic Bond I Quarterly Inc6.4617.2137.711,128.663.95Buy
Artemis Strategic Bond I Monthly Inc6.3417.0738.501,128.663.96Buy
Baillie Gifford Active Gilt Plus B Inc-2.9617.6218.8089.461.20Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc0.6836.0953.18115.571.50Buy
Baillie Gifford Active Long Gilt Plus B Inc-6.3233.3038.9649.901.80Buy
Baillie Gifford Investment Grade Bond B Inc1.3819.3534.43228.622.80Buy
CF Canlife Corporate Bond C Inc GBP2.3818.8530.96304.643.83Buy
CF Canlife UK Government Bond C Inc-3.2815.6313.8336.811.58Buy
EdenTree Amity Sterling Bond B5.2115.1934.61110.344.59Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Boost Gilts 10Y 3x Leverage Daily ETP7.97-2.70--GBXFixed Int - GBP Long MaturityBuy
Boost Gilts 10Y 3x Short Daily ETP-9.22-2.14-49.25-GBXFixed Int - GBP Long MaturityBuy
LYXOR FTSE Actuaries UK Inflation-Linked Gilts (DR) UCITS ETF D GBP2.54---GBPFixed Int - GBP Index LinkedBuy
LYXOR UK£ 10Y Inflation Expectations UCITS ETF C GBP----GBPFixed Int - GBP Index LinkedBuy
Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF D0.11-0.04--GBPFixed Int - GBP GovernmentBuy
Pimco Sterling Short Maturity Source UCITS ETF0.310.752.363.86GBPFixed Int - GBP Short/ Medium MaturityBuy
SPDR Barclays 1-5 Year Gilt UCITS ETF0.10-0.465.555.52GBPFixed Int - GBP GovernmentBuy
SPDR Barclays 15+ Year Gilt UCITS ETF4.00-7.4235.9443.44GBPFixed Int - GBP Long MaturityBuy
SPDR Barclays UK Gilt UCITS ETF GBP2.31-4.1920.5822.96GBPFixed Int - GBP GovernmentBuy
Vanguard UK Gilt UCITS ETF2.26-4.0021.5324.39GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP2.23-3.2220.5422.73GBPFixed Int - GBP GovernmentBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP0.09-0.115.285.22GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP2.550.5836.5752.04GBPFixed Int - GBP Index LinkedBuy

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