Fund Objective

To provide a total return from both capital growth and income.

View on Past Performance

The Fund increased its exposure to sterling corporate bonds using new inflows of cash. The duration of the Fund remains close to that of the benchmark. There were no significant changes among the sectors to which it is exposed, with large positions in bonds issued by financial and insurance companies, as they continue to offer regulatory protection.The UK Bond Fund performed marginally better than its benchmark index during the month, due mainly to interest rate decisions. The Fund's overall portfolio contributed positively to returns although some of the holdings in the banking and finance sectors had a slightly negative impact.

Future Expectations

The outlook for UK bonds continues to be driven by prospects for further interest rate increases and reaction to generally mixed economic signals. The housing market remains strong, while lower utilities prices have left the inflation picture looking more benign.

Fund Details