Sterling Government Bond Fund
Government bond funds are invested in bonds backed by the government or by government-linked agencies. This backing minimises the credit risk of these portfolios as governments are unlikely to default on debt. They’re not totally without risk, though – these Funds tend to have longer durations than other funds, which means your client could be exposed to other types of risk, such as the risk of interest rate movements.
The Fund aims to maximise returns by investing predominantly in UK Government securities.
Who is the Fund suitable for?
This Fund is suitable for clients looking for a longer-term investment with less risk than investing directly in the stock market. It is best as part of a wider portfolio. Your client should:
- Be prepared to accept a moderate level of volatility
- Be investing for the longer term (at least five years)
- Accept that they may not get back as much as they invested
How is income paid?
We pay income quarterly, in February, May, August and November. The income is not smoothed.
Why recommend the Sterling Government Bond Fund?
- An experienced pair of hands – Our team has, on average, 16 years’ experience in managing fixed income assets.
- Risk management – As careful custodians of your clients’ money, we manage risk prudently and responsibly.
- Meticulous research – We scrutinise economic variables such as interest rates and inflation to identify the best opportunities in government bonds.
How is the Fund invested?
As well as investing in UK Government bonds, the Sterling Government Bond Fund may invest in bonds issued by government agencies, as well as government-guaranteed bonds. A small proportion may be invested in bonds issued by companies (corporate bonds).
What are the charges?
This Fund has an ongoing charge of 0.32%.
Find out more
If you would like more information on the Sterling Government Bond Fund, please visit our Product Literature pages, where you will find a Fund Factsheet, Key Features of the Fund and Past Performance data.