Fund Objective

To provide you with a return on your investment. This is achieved by investing in the UK Fixed interest market as represented by the Financial Times Stock Exchange Actuaries UK Gilts All Stocks Index.

View on Past Performance

UK government bonds have fallen in the past six months. Prices were boosted by financial market turmoil, which encouraged investors to switch into government bonds from riskier assets such as equities and corporate bonds. However, investor concerns about higher inflation caused gilt prices to fall sharply in May.

Future Expectations

The focus for markets has swung from worries about financial stability and fears of economic recession, to concern over inflation and an expectation that official interest rates will start to climb. SWIP forecasts gilt yields of 4.9% in 12 months' time, against a projected background of subdued economic activity. SWIP anticipates that inflation will be back to more normal levels, and that cuts in official interest rates will take place.

Fund Details