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 Acc4.4718.7940.87480.055.04Buy
AXA Framlington Managed Income Z Acc4.4016.4134.78480.054.99Buy
AXA Sterling Strategic Bond Z Acc-1.159.0917.97184.601.60Buy
AXA Sterling Strategic Bond Z Gr Acc-1.169.8619.90184.601.60Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc0.254.518.75679.831.30Buy
AXA Sterling Credit Short Duration Bond Z Acc0.263.897.21679.831.30Buy
AXA Sterling Buy And Maintain Credit Z-0.5610.3821.01150.202.60Buy
Aberdeen Sterling Government Bond I Acc-2.286.1612.95117.920.70Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc-0.9012.0927.7719.842.50Buy
Aberdeen Sterling Long Dated Government Bond I Acc-2.4015.6736.7243.291.20Buy
Aberdeen Sterling Long Dated Government Bond K Acc-2.2714.6933.2243.291.40Buy
Aberdeen Sterling Opportunistic Corporate Bond I Acc1.5810.2216.21251.942.90Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Acc1.5611.1918.06251.942.90Buy
Aberdeen Sterling Short Term Government Bond I Acc-1.330.09-0.01100.350.30Buy
Artemis Strategic Bond I Monthly Acc4.5814.4228.491,229.743.90Buy
Artemis Strategic Bond I Quarterly Acc4.5814.5329.111,229.743.90Buy
Baillie Gifford Active Gilt Plus B Acc-2.158.7112.6522.921.00Buy
Baillie Gifford Active Long Gilt Plus B Acc-3.0815.5429.9137.601.80Buy
F&C Strategic Bond C Acc-0.931.197.39119.110.80Buy
F&C Strategic Bond 2 Acc-2.69-3.112.19119.11-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc4.4418.7841.21480.055.26Buy
AXA Framlington Managed Income Z Inc4.4416.4835.37480.055.19Buy
AXA Sterling Credit Short Duration Bond Z Inc0.253.907.35679.831.30Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc0.154.328.62679.831.30Buy
Aberdeen Sterling Government Bond I Inc-2.286.1712.97117.920.70Buy
Aberdeen Sterling Opportunistic Corporate Bond I Inc1.5710.2316.11251.942.90Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Inc1.5611.2218.01251.942.90Buy
Aberdeen Sterling Short Term Government Bond I Inc-1.330.03-0.04100.350.30Buy
Allianz Gilt Yield I Inc-1.519.1514.681,513.45-Buy
Artemis High Income I Monthly Inc5.5515.2233.751,296.855.23Buy
Artemis High Income I Inc5.5515.3634.761,296.855.23Buy
Artemis Strategic Bond I Quarterly Inc4.6014.5928.691,229.743.90Buy
Artemis Strategic Bond I Monthly Inc4.6014.4929.101,229.743.90Buy
Baillie Gifford Active Gilt Plus B Inc-2.178.7112.6622.921.00Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc-6.8618.0328.12112.231.80Buy
Baillie Gifford Active Long Gilt Plus B Inc-3.0515.5629.9537.601.80Buy
Baillie Gifford Investment Grade Bond B Inc-0.3710.2220.91183.552.90Buy
EdenTree Amity Sterling Bond B4.6611.4123.30128.384.58Buy
F&C Corporate Bond C Inc1.1210.6023.1026.512.90Buy
F&C Extra Income Bond C Inc2.9110.2723.8562.123.20Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Boost Gilts 10Y 3x Leverage Daily ETP-3.15-8.7619.51-GBXFixed Int - GBP Long MaturityBuy
Boost Gilts 10Y 3x Short Daily ETP1.365.33-28.34-GBXFixed Int - GBP Long MaturityBuy
LYXOR Core FTSE Actuaries UK Inflation-Linked Gilts (DR) UCITS ETF D GBP-1.76-6.07--GBPFixed Int - GBP Index LinkedBuy
LYXOR UK£ 10Y Inflation Expectations UCITS ETF C GBP-0.88-1.12--GBPFixed Int - GBP Index LinkedBuy
Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF D-0.39-1.22--GBPFixed Int - GBP GovernmentBuy
Pimco Sterling Short Maturity Source UCITS ETF0.170.352.033.17GBPFixed Int - GBP Short/ Medium MaturityBuy
SPDR Bloomberg Barclays UK Gilt UCITS ETF GBP-0.19-2.307.9018.35GBPFixed Int - GBP GovernmentBuy
SPDR Bloomberg Barclays 1-5 Year Gilt UCITS ETF-0.52-1.441.653.73GBPFixed Int - GBP Short/ Medium MaturityBuy
SPDR Bloomberg Barclays 15+ Year Gilt UCITS ETF0.53-2.5814.4936.68GBPFixed Int - GBP Long MaturityBuy
Vanguard UK Gilt UCITS ETF-0.26-2.408.6719.75GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP-0.13-2.198.5018.37GBPFixed Int - GBP GovernmentBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP-0.43-1.311.833.60GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP-1.78-6.2115.7430.85GBPFixed Int - GBP Index LinkedBuy

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