Fund Objective

To achieve both capital growth and income.

View on Past Performance

The fund outperformed its benchmark over the twelve months to the end of June. The portfolio’s holdings among different bond maturities benefited its performance over the year. A shifting interest-rate environment saw yield curves change over the period, which provided investment opportunities for the portfolio manager.

Future Expectations

An improving economic outlook has recently lessened demand for bonds. Concerns about inflation and rising interest rates pose the primary challenges to fixed-income markets in the UK. Gilts are particularly vulnerable to further interest rate hikes, but reduced issuance (and therefore a smaller supply) should provide some support in the year ahead.

Fund Details