At a glance
Potential for better growth than cash savings by investing in bonds, aiming for modest returns and income.
Our experts invest your money using Environmental, Social, and Governance (ESG) considerations to help select which bonds to invest in. Read more about our responsible investing approach including ESG considerations.
Download Key Information
Highlights
Reduces risk
Likely to be a less 'bumpy ride', compared to higher risk investments.
Generate income
Any interest can be re-invested or withdrawn every six months - useful if you need an income from your savings.
All done for you
Managed for you by our dedicated team of investment experts.
How your money's invested
This fund invests 100% in bonds, which typically means lower potential returns and lower risk than shares.
Typical mix
- Around 40-50% GBP denominated bonds with strong credit ratings
- Up to 10% in higher yielding bonds with less strong credit ratings
- The rest in government bonds, mostly UK
Remember, the value of investments can go up and down, so you may get back less money than you put in. Tax depends on your individual circumstances and the regulations may change in the future.
Where your money's invested
The fund invests in government and corporate bonds, the majority of which will be in the UK.
Here's the detail at 30 September 2024.
Higher risk
- 0% - Shares (emerging markets)
- 0% - Shares (UK)
- 0% - Real estate investment trusts
- 0% - Shares (overseas developed)
- 0% - Bonds (emerging markets)
- 0% - Bonds (high yield)
Lower risk
- 0% - Cash
- 0% - Short maturity bonds
- 49% - UK Government bonds (Gilts)
- 1% - Global government bonds
- 32% - UK corporate bonds
- 18% - Global corporate bonds
What do these terms mean?
Close ModalBonds: These are like IOUs, used by companies and governments to raise money. The buyer effectively lends money to the seller, in return for interest on their investment over a set amount of time. When that time’s up, the value is paid back.
Gilts: These are just a type of bond. But instead of lending money to a company, it’s lent to the UK Government.
Shares: A share is a tiny bit of a company. Share owners are called shareholders. If a company does well, shareholders are rewarded with a proportion of the profits, paid out as dividends. The value of shares rises and falls according to the company’s performance, and other factors.
Real estate investment trusts (REITs): These are pools of money gathered by a company from investors. They’re used to buy, manage or invest in property and land (real estate) to generate income – a way of investing in commercial property without needing millions.
How the fund invests
Our experts select bonds to invest in to provide a diversified mix of geographies, corporate and government bonds whilst taking into account ESG considerations.
Top bondsThe following is up-to-date as of 30 September 2024.
| Amount invested | Bond |
|---|---|
| 47.5% | UK Treasury* |
| 1.3% | Vodafone Group 5.9% 2032 |
| 0.9% | Telefonica Emisiones SAU 5.445% 2029 |
| 0.8% | Deutsche Bank 6.125% 2030 |
| 0.7% | National Grid Electricity Transmission Plc 2.75% 2035 |
| 0.7% | Morgan Stanley 5.789% 2033 |
| 0.7% | KPN 5.75% 2029 |
| 0.7% | Northumbrian Water Finance Plc 5.625% 2033 |
| 0.7% | Phoenix Group Holdings Plc 5.625% 2031 |
| 0.6% | Zurich Finance 5.125% 2052 |
*The total value invested in UK Treasury Bonds (Gilts), split across 5 to 15 year maturities
Which regions?
| Amount invested | Region |
|---|---|
| 82.8% | UK |
| 9.7% | Europe (excluding UK) |
| 6.7% | North America |
| 0.8% | Latin America |
What you could've earned already
The graph below gives you an indication of how much you could've earned, after charges, if you had invested £10,000 in this approach five years ago. Remember, past performance isn't a reliable guide to future performance.
The following is up-to-date as of 30 September 2024.
-
2019Sep-19: £10,000Sep-19: £10,000
-
Oct-19: £9,917Oct-19: £9,919
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Nov-19: £9,868Nov-19: £9,870
-
Dec-19: £9,797Dec-19: £9,807
-
Jan-20: £10,028Jan-20: £10,037
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Feb-20: £10,067Feb-20: £10,081
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Mar-20: £9,878Mar-20: £9,893
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Apr-20: £10,092Apr-20: £10,109
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May-20: £10,176May-20: £10,195
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2020Jun-20: £10,237Jun-20: £10,258
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Jul-20: £10,321Jul-20: £10,352
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Aug-20: £10,198Aug-20: £10,232
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Sep-20: £10,267Sep-20: £10,302
-
Oct-20: £10,261Oct-20: £10,301
-
Nov-20: £10,286Nov-20: £10,317
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Dec-20: £10,393Dec-20: £10,432
-
Jan-21: £10,298Jan-21: £10,342
-
Feb-21: £9,945Feb-21: £9,991
-
Mar-21: £9,910Mar-21: £9,965
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Apr-21: £9,933Apr-21: £9,986
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May-21: £9,972May-21: £10,027
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2021Jun-21: £10,027Jun-21: £10,086
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Jul-21: £10,149Jul-21: £10,211
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Aug-21: £10,122Aug-21: £10,179
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Sep-21: £9,885Sep-21: £9,956
-
Oct-21: £9,878Oct-21: £9,936
-
Nov-21: £10,030Nov-21: £10,092
-
Dec-21: £9,921Dec-21: £9,989
-
Jan-22: £9,661Jan-22: £9,721
-
Feb-22: £9,544Feb-22: £9,624
-
Mar-22: £9,397Mar-22: £9,471
-
Apr-22: £9,188Apr-22: £9,256
-
May-22: £9,108May-22: £9,160
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2022Jun-22: £8,916Jun-22: £9,002
-
Jul-22: £9,195Jul-22: £9,284
-
Aug-22: £8,560Aug-22: £8,629
-
Sep-22: £7,752Sep-22: £7,784
-
Oct-22: £8,121Oct-22: £8,168
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Nov-22: £8,387Nov-22: £8,450
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Dec-22: £8,156Dec-22: £8,227
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Jan-23: £8,452Jan-23: £8,525
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Feb-23: £8,214Feb-23: £8,299
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Mar-23: £8,382Mar-23: £8,460
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Apr-23: £8,329Apr-23: £8,407
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May-23: £8,072May-23: £8,168
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2023Jun-23: £7,915Jun-23: £8,030
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Jul-23: £8,077Jul-23: £8,180
-
Aug-23: £8,072Aug-23: £8,176
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Sep-23: £8,068Sep-23: £8,186
-
Oct-23: £8,056Oct-23: £8,164
-
Nov-23: £8,330Nov-23: £8,436
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Dec-23: £8,783Dec-23: £8,891
-
2024Jan-24: £8,677Jan-24: £8,761
-
Feb-24: £8,568Feb-24: £8,649
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Mar-24: £8,747Mar-24: £8,823
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Apr-24: £8,507Apr-24: £8,580
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May-24: £8,570May-24: £8,659
-
Jun-24: £8,681Jun-24: £8,762
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Jul-24: £8,847Jul-24: £8,936
-
Aug-24: £8,879Aug-24: £8,964
-
Sep-24: £8,911Sep-24: £8,993
| September 2019 to September 2020 | September 2020 to September 2021 | September 2021 to September 2022 | September 2022 to September 2023 | September 2023 to September 2024 | |
|---|---|---|---|---|---|
| This fund | 2.7% | -3.7% | -21.7% | 4.0% | 10.6% |
| Benchmark* | 3.0% | -3.4% | -21.8% | 5.2% | 9.9% |
The annual charge changed from 0.60% to 0.30% on 6 January 2024. The performance shown is based on the current annual charge, with adjustments made to prior years to reflect the current charging structure of the fund.
Source Lipper, total return (income reinvested).
Key information
Before investing please make sure you've read the following:
Investment Mix
Close Modal
- Higher potential returns and risk
- Lower potential returns and risk
The Investment Mix shows you how much of your money typically goes into higher risk investments with higher potential returns, and how much goes into lower risk investments with lower potential returns.
For more info, check out our guide.
Investing your pension and the risksWant to check out the performance of another fund?
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