UK Government Bond Fund


Fund Objective

The Fund’s investment objective is to achieve a total return over the medium term (3-5 years) by investing at least 80% in UK government bonds, also known as gilts.The Fund’s performance target is to outperform the FTSE Actuaries UK Conventional Gilts All Stocks Index (the "Index") over a rolling 5-year period. For further information on the Fund's index, please refer to the Prospectus, available via the fund information section of this website.

Fund managers

Craig Inches is the lead manager of the Fund and is supported by co-manager Paul Rayner.

Craig joined RLAM in 2009, becoming Head of Short Rates and Cash in 2016. He is responsible for the management and oversight of RLAM’s short rate strategies which include our Cash Plus and Enhanced Cash Funds. In addition Craig jointly manages the government bond strategies with Paul Rayner, Head of Government Bonds. Prior to RLAM, Craig was an Investment Director with Scottish Widows Investment Partnership. In addition to 18 years of cash and fixed income experience, Craig has an MSc in Investment Analysis from Stirling University and a BSc (Hons) in Actuarial Mathematics and Statistics from Heriot-Watt University.

 

Paul Rayner is Head of Government Bonds at RLAM.  Paul joined RLAM in June 2005 from SG Asset Management where he was Head of UK Bonds. Paul has over 30 years’ experience in managing UK and global government bonds and is a graduate in Economics from the University of Kent. 

 


Investment approach

Central to the investment process used across our Fixed Interest Team is the belief that fixed interest markets offer inefficiencies that can be exploited. The Fund aims to achieve outperformance from multiple sources (e.g. asset allocation, stock selection, duration and yield curve management). 

Asset allocation is derived from the team's quarterly economic review in which key economic factors such as growth, inflation and interest rates are assessed. Stock selection decisions are reached through a combination of top-down analysis based on the team's macroeconomic views and bottom-up stock selection. The managers believe that volatility in government bond markets is likely to persist and that the active manager can take advantage of pricing anomalies. An in-house pricing model is used to highlight attractive relative valuation opportunities in UK government bonds. Index linked bonds, overseas government debt and floating rate notes can be held when the managers thinks that it is appropriate.

The Fund will differ from benchmark weightings when the team have strong investment views. Asset allocation, interest rate views and interest rate views will be the key risks within the Fund.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Unlike the income from a single fixed income security, the level of income (yield) from a fund is not fixed and may go up and down. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. This fund can invest more than 35% of its value in government securities.

 

 

Best Fund over 10 years Bond GBP - UK Government Bond Fund