Fund Objective

To give an income, whilst having regard to the capital value, by investing in mainly UK Government and other fixed interest securities.

View on Past Performance

UK government bond prices have been subject to wild swings over the past six months. They performed poorly from April to mid-June as investors focused on the threat of inflation, but recovered much of the lost ground through to September as recession fears became a major concern again. The focus has moved squarely towards fears of economic recession, rather than inflationary concerns, and UK gilt prices have been on a rising trend.

Future Expectations

SWIP forecasts higher gilt yields of 4.75% 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