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 Acc8.4521.9657.02409.044.77Buy
AXA Framlington Managed Income Z Acc8.1618.9449.52409.044.30Buy
AXA Sterling Strategic Bond Z Acc-1.6117.0022.17210.541.60Buy
AXA Sterling Strategic Bond Z Gr Acc-1.5218.2724.85210.541.60Buy
AXA Sterling Credit Short Duration Bond Z Gr Acc0.926.1711.69760.751.30Buy
AXA Sterling Credit Short Duration Bond Z Acc0.865.309.83760.751.30Buy
AXA Sterling Buy And Maintain Credit Z0.4818.35-163.282.60Buy
Aberdeen Sterling Government Bond I Acc-3.1614.3615.69155.440.60Buy
Aberdeen Sterling Long Dated Corporate Bond K Acc-0.5624.5540.2725.372.50Buy
Aberdeen Sterling Long Dated Government Bond I Acc-3.6231.6941.2042.731.20Buy
Aberdeen Sterling Long Dated Government Bond K Acc-4.7230.5837.5142.731.40Buy
Aberdeen Sterling Opportunistic Corporate Bond I Acc3.7010.0821.28419.732.80Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Acc3.7011.3623.51419.732.80Buy
Aberdeen Sterling Short Term Government Bond I Acc-1.281.991.5599.090.20Buy
Artemis Strategic Bond I Monthly Acc6.4616.9235.471,150.053.96Buy
Artemis Strategic Bond I Quarterly Acc6.5717.0436.501,150.053.96Buy
Baillie Gifford Active Gilt Plus B Acc-2.5015.3316.6135.341.30Buy
Baillie Gifford Active Long Gilt Plus B Acc-5.4230.8835.7140.501.70Buy
CF Canlife Corporate Bond C Acc GBP2.3117.5728.00297.043.72Buy
F&C Strategic Bond C Acc0.513.2514.99129.541.00Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Managed Income Z Gross Inc8.4521.9957.12409.045.44Buy
AXA Framlington Managed Income Z Inc8.1818.9849.65409.044.46Buy
AXA Sterling Credit Short Duration Bond Z Inc0.945.559.65760.751.30Buy
AXA Sterling Credit Short Duration Bond Z Gr Inc0.906.0811.55760.751.30Buy
Aberdeen Sterling Government Bond I Inc-3.1714.3115.67155.440.60Buy
Aberdeen Sterling Opportunistic Corporate Bond I Inc3.8110.1021.21419.732.80Buy
Aberdeen Sterling Opportunistic Corporate Bond I Gr Inc3.8611.2922.86419.732.80Buy
Aberdeen Sterling Short Term Government Bond I Inc-1.281.931.5299.090.20Buy
Allianz Gilt Yield I Inc-2.1917.7818.021,383.971.37Buy
Artemis High Income I Monthly Inc8.8616.9248.961,207.495.24Buy
Artemis High Income I Inc9.0017.0550.661,207.495.27Buy
Artemis Strategic Bond I Quarterly Inc6.5917.0935.721,150.053.96Buy
Artemis Strategic Bond I Monthly Inc6.4816.9736.481,150.053.98Buy
Baillie Gifford Active Gilt Plus B Inc-2.5315.2616.5735.341.30Buy
Baillie Gifford Active Index-Linked Gilt Plus B Inc-3.1534.3649.79111.831.40Buy
Baillie Gifford Active Long Gilt Plus B Inc-5.4030.9135.7040.501.70Buy
Baillie Gifford Investment Grade Bond B Inc0.6916.8130.31209.862.90Buy
CF Canlife Corporate Bond C Inc GBP2.3017.5727.92297.043.72Buy
CF Canlife UK Government Bond C Inc-2.7914.4612.4237.241.59Buy
EdenTree Amity Sterling Bond B5.3014.8031.85112.744.59Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Boost Gilts 10Y 3x Leverage Daily ETP-0.22-3.39--GBXFixed Int - GBP Long MaturityBuy
Boost Gilts 10Y 3x Short Daily ETP-1.94-1.52-46.23-GBXFixed Int - GBP Long MaturityBuy
LYXOR FTSE Actuaries UK Inflation-Linked Gilts (DR) UCITS ETF D GBP-0.48---GBPFixed Int - GBP Index LinkedBuy
LYXOR UK£ 10Y Inflation Expectations UCITS ETF C GBP0.54---GBPFixed Int - GBP Index LinkedBuy
Lyxor FTSE Actuaries UK Gilts 0-5Y (DR) UCITS ETF D-0.67-0.54--GBPFixed Int - GBP GovernmentBuy
Pimco Sterling Short Maturity Source UCITS ETF0.200.612.213.62GBPFixed Int - GBP Short/ Medium MaturityBuy
SPDR Barclays 1-5 Year Gilt UCITS ETF-0.72-0.984.874.90GBPFixed Int - GBP Short/ Medium MaturityBuy
SPDR Barclays 15+ Year Gilt UCITS ETF-0.67-5.4132.1540.16GBPFixed Int - GBP Long MaturityBuy
SPDR Barclays UK Gilt UCITS ETF GBP-0.58-3.4518.2420.95GBPFixed Int - GBP GovernmentBuy
Vanguard UK Gilt UCITS ETF-0.82-3.2919.0522.16GBPFixed Int - GBP GovernmentBuy
iShares Core UK Gilts UCITS ETF GBP-0.58-2.5018.3120.82GBPFixed Int - GBP GovernmentBuy
iShares UK Gilts 0-5yr UCITS ETF 0 5 GBP-0.70-0.604.644.72GBPFixed Int - GBP GovernmentBuy
iShares £ Index-Linked Gilts UCITS ETF GBP-0.54-1.9732.8749.36GBPFixed Int - GBP Index LinkedBuy

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