UK Fixed Income Funds
Fixed Income funds can generate a steady income stream and give investors a chance to benefit from the improving credit profiles of governments and companies worldwide.
Why invest in fixed income?
The stable income generated by bonds has been much prized in recent years, when interest rates have offered very little in terms of low-risk income. Pension funds, charities and institutional investors are among the many investors who have sought the steady income generated by bonds.
Bonds and shares tend to perform differently throughout the various stages of a typical economic cycle. Holding a range of assets adds diversification and reduces overall portfolio risk.
A range of fixed income profiles
Globalisation means that both developed markets and developed economies have the ability to issue bonds. For clients, that opens up a wide range of opportunities – from the ‘AAA’-rated UK Government, which has never defaulted on its debt, to higher-risk bonds issued by companies and governments in emerging markets.
The Santander UK Fixed Income Funds
We offer three Fixed Income Funds, all managed by the same investment team:
Sterling Government Bond Fund
This Fund invests mainly in bonds issued by the UK Government; these remain highly rated even after the global financial crisis.
Corporate Bond Fund
This Fund gives you the chance to benefit from the growth of European companies, with less risk than holding shares.
Strategic Bond Fund
This Fund has the freedom to invest across the entire fixed income market, wherever we see the best opportunities, and includes the use of derivatives (these are financial instruments of which the value is linked to other assets such as shares or bonds).