UK Gilt Fund

Fund overview

The Fund is an actively managed portfolio that is invested predominantly in conventional UK government bonds. The fund manager can hold other securities including overseas government bonds, index linked securities, non-government bonds and floating rate notes when thought appropriate. 


Craig Inches is the Fund's lead manager, working closely with RLAM's Head of Government Bonds, Paul Rayner. He is supported by a skilled and experienced team.

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, Head of Government Bonds, supports Craig Inches. Paul joined RLAM in June 2005 from SG Asset Management where he was Head of UK Bonds. Paul has over 25 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 is our belief that fixed interest markets offer inefficiencies that can be exploited by our experienced team. 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 our quarterly economic review in which we assess key economic factors such as growth, inflation and interest rates. Stock selection decisions are reached through a combination of top-down analysis based on our macroeconomic views and bottom-up stock selection. We believe that volatility in government bond markets is likely to persist and that the active manager can take advantage of pricing anomalies. We use our own pricing model 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 manager thinks that it is appropriate.

The Fund will differ from benchmark weightings when we have strong investment views. Asset allocation and interest rate views (duration and yield curve) 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.