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 Acc14.0622.6868.29392.534.77Buy
AXA Framlington Managed Income Z Acc13.4019.2559.49392.534.32Buy
AXA Sterling Strategic Bond Z Acc7.3122.6026.86209.952.00Buy
AXA Sterling Strategic Bond Z Gr Acc7.4824.0229.77209.952.00Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc2.817.1014.20668.281.80Buy
AXA Sterling Credit Short Duration Bond Z Acc2.626.1412.33668.281.80Buy
Aberdeen Sterling Government Bond I Acc5.1620.2017.81164.690.60Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc12.8232.7251.3126.402.40Buy
Aberdeen Sterling Long Dated Government Bond I Acc11.0546.9243.7445.481.20Buy
Aberdeen Sterling Long Dated Government Bond K Acc9.7844.2440.0445.481.30Buy
Aberdeen Sterling Opportunistic Corporate Bond I Acc7.5910.2925.40481.882.80Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Acc7.7711.6727.84481.882.80Buy
Aberdeen Sterling Short Term Government Bond I Acc0.182.832.19104.77-Buy
Artemis Strategic Bond I Monthly Acc10.4515.7640.701,084.653.91Buy
Artemis Strategic Bond I Quarterly Acc10.5515.8641.881,084.653.90Buy
Baillie Gifford Active Gilt Plus B Acc5.3222.0218.9585.651.10Buy
Baillie Gifford Active Long Gilt Plus B Acc9.1643.2638.5950.631.70Buy
BlackRock Corporate Bond Tracker D Acc9.1223.0737.683,162.192.39Buy
BlackRock Index Linked Gilt Tracker D Acc21.5950.99-1,766.660.39Buy
BlackRock UK Gilts All Stocks Tracker D Acc5.8524.6521.864,636.731.55Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc14.0722.7768.51392.535.44Buy
AXA Framlington Managed Income Z Inc13.4119.3359.86392.534.47Buy
AXA Sterling Credit Short Duration Bond Z Inc2.746.2712.09668.281.80Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc2.796.9114.30668.281.80Buy
Aberdeen Sterling Government Bond I Inc5.1620.1617.83164.690.60Buy
Aberdeen Sterling Opportunistic Corporate Bond I Inc7.5810.1425.28481.882.80Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Inc7.7611.5927.77481.882.80Buy
Aberdeen Sterling Short Term Government Bond I Inc0.182.772.16104.77-Buy
Allianz Gilt Yield I Inc6.6423.3319.941,307.651.38Buy
Artemis High Income I Monthly Inc12.1115.4658.391,192.185.36Buy
Artemis High Income I Inc12.2415.5960.421,192.185.36Buy
Artemis Strategic Bond I Quarterly Inc10.5715.9240.951,084.653.90Buy
Artemis Strategic Bond I Monthly Inc10.4715.8141.871,084.653.91Buy
Baillie Gifford Active Gilt Plus B Inc5.3522.0218.9985.651.10Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc20.2845.6852.13114.881.30Buy
Baillie Gifford Active Long Gilt Plus B Inc9.1443.2638.5150.631.70Buy
Baillie Gifford Investment Grade Bond B Inc9.7621.4538.13240.822.80Buy
BlackRock Corporate Bond Tracker D Inc8.8422.6937.313,162.192.40Buy
BlackRock UK Gilts All Stocks Tracker D Inc5.9124.6121.794,636.731.55Buy
CF Canlife Corporate Bond C Inc GBP9.8621.2235.39308.323.70Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Boost Gilts 10Y 3x Leverage Daily ETP14.6818.03--GBXFixed Int - GBP GovernmentBuy
Boost Gilts 10Y 3x Short Daily ETP-14.71-19.88--GBXFixed Int - GBP Long MaturityBuy
LYXOR FTSE Actuaries UK Inflation-Linked Gilts (DR) UCITS ETF D GBP5.53---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 D0.35---GBPFixed Int - GBP GovernmentBuy
Pimco Sterling Short Maturity Source UCITS ETF0.391.092.474.17GBPFixed Int - GBP Short/ Medium MaturityBuy
SPDR Barclays 1-5 Year Gilt UCITS ETF0.431.326.866.44GBPFixed Int - GBP GovernmentBuy
SPDR Barclays 15+ Year Gilt UCITS ETF7.3611.3749.7246.24GBPFixed Int - GBP Long MaturityBuy
SPDR Barclays UK Gilt UCITS ETF GBP4.396.6027.2325.28GBPFixed Int - GBP GovernmentBuy
Vanguard UK Gilt UCITS ETF5.027.1928.4226.69GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP3.695.8425.2823.39GBPFixed Int - GBP GovernmentBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP0.301.216.075.68GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP5.6319.7345.2651.87GBPFixed Int - GBP Index LinkedBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.