Fund Objective

To give either an income or growth (when income is kept within the fund). To do so by investing mainly in high quality corporate bonds and other fixed interest securities issued primarily by companies operating in the UK. The fund may also invest in Europe.

View on Past Performance

Corporate bonds have generally performed poorly in 2008, with risk aversion in the forefront of investors' minds. Corporate bonds remain affected by concerns relating to US subprime mortgages and the ability of banks to lend to each other Corporate bonds were particularly poor in September.They recorded the worst one-month performance on record, affected by unprecedented market upheavals including the failure of Lehman's and a multitude of government-sponsored bailouts for the financial sector. The rapid succession of bank failures and government bail-outs has destabilised the credit market, leaving many participants unsure as to the realisable values of financial sector debt in their portfolios.

Fund Details