Bond and gilt fund | Virgin Money UK

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Any interest can be re-invested or withdrawn every six months - useful if you need an income from your savings.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.

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 bonds

The following is up-to-date as of 30 June 2024.

Amount invested	Bond
47.4%	UK Treasury*
1.2%	Vodafone Group 5.9% 2032
0.9%	Aviva Plc 6.875% 2053
0.8%	Telefonica Emisiones SAU 5.445% 2029
0.7%	Deutsche Bank 6.125% 2030
0.7%	National Grid Electricity Transmission Plc 2.75% 2035
0.7%	Barclays Plc 6.369% 2031
0.7%	Northumbrian Water Finance Plc 5.625% 2033
0.7%	Morgan Stanley 5.789% 2033
0.7%	KPN 5.75% 2029

*The total value invested in UK Treasury Bonds (Gilts), split across 5 to 15 year maturities

Which regions?

Amount invested	Region
82.3%	UK
10.1%	Europe (excluding UK)
6.4%	North America
0.7%	Latin America
0.5%	Asia Pacific

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 June 2024.

Key:

Bond Fund

Benchmark

£7.5k

£10k

£12.5k

£15k

Jun-19: £10,000

Jun-19: £10,000

2019
Jul-19: £10,183

Jul-19: £10,187
Aug-19: £10,306

Aug-19: £10,330
Sep-19: £10,308

Sep-19: £10,332
Oct-19: £10,223

Oct-19: £10,248
Nov-19: £10,172

Nov-19: £10,198
Dec-19: £10,100

Dec-19: £10,133
Jan-20: £10,336

Jan-20: £10,370
Feb-20: £10,377

Feb-20: £10,416
Mar-20: £10,182

Mar-20: £10,221
Apr-20: £10,403

Apr-20: £10,444
May-20: £10,489

May-20: £10,534
Jun-20: £10,553

Jun-20: £10,598

2020
Jul-20: £10,639

Jul-20: £10,696
Aug-20: £10,512

Aug-20: £10,572
Sep-20: £10,583

Sep-20: £10,644
Oct-20: £10,576

Oct-20: £10,643
Nov-20: £10,602

Nov-20: £10,659
Dec-20: £10,711

Dec-20: £10,778
Jan-21: £10,615

Jan-21: £10,686
Feb-21: £10,250

Feb-21: £10,323
Mar-21: £10,215

Mar-21: £10,296
Apr-21: £10,238

Apr-21: £10,317
May-21: £10,279

May-21: £10,359
Jun-21: £10,335

Jun-21: £10,421

2021
Jul-21: £10,460

Jul-21: £10,550
Aug-21: £10,432

Aug-21: £10,517
Sep-21: £10,189

Sep-21: £10,287
Oct-21: £10,181

Oct-21: £10,266
Nov-21: £10,338

Nov-21: £10,427
Dec-21: £10,224

Dec-21: £10,320
Jan-22: £9,958

Jan-22: £10,043
Feb-22: £9,836

Feb-22: £9,944
Mar-22: £9,685

Mar-22: £9,785
Apr-22: £9,470

Apr-22: £9,564
May-22: £9,388

May-22: £9,464
Jun-22: £9,189

Jun-22: £9,301

2022
Jul-22: £9,478

Jul-22: £9,593
Aug-22: £8,822

Aug-22: £8,915
Sep-22: £7,991

Sep-22: £8,042
Oct-22: £8,370

Oct-22: £8,439
Nov-22: £8,645

Nov-22: £8,731
Dec-22: £8,406

Dec-22: £8,500
Jan-23: £8,712

Jan-23: £8,808
Feb-23: £8,465

Feb-23: £8,574
Mar-23: £8,639

Mar-23: £8,741
Apr-23: £8,584

Apr-23: £8,686
May-23: £8,319

May-23: £8,439
Jun-23: £8,145

Jun-23: £8,296

2023
Jul-23: £8,324

Jul-23: £8,452
Aug-23: £8,320

Aug-23: £8,447
Sep-23: £8,314

Sep-23: £8,457
Oct-23: £8,302

Oct-23: £8,435
Nov-23: £8,584

Nov-23: £8,716
Dec-23: £9,051

Dec-23: £9,186
Jan-24: £8,939

Jan-24: £9,051

2024
Feb-24: £8,827

Feb-24: £8,936
Mar-24: £9,011

Mar-24: £9,116
Apr-24: £8,764

Apr-24: £8,864
May-24: £8,829

May-24: £8,946
Jun-24: £8,938

Jun-24: £9,053

2019 2024

	June 2019 to June 2020	June 2020 to June 2021	June 2021 to June 2022	June 2022 to June 2023	June 2023 to June 2024
This fund	5.5%	-2.1%	-11.2%	-11.4%	9.7%
Benchmark*	6.0%	-1.7%	-10.8%	-10.8%	9.1%

*The fund aims to match or beat the performance of its benchmark (50% the FTSE 5-15 Year Gilt Index and 50% the ICE Bank of America Merrill Lynch 5-15 Year Non-Gilt Index), after charges, measured over periods of three years or more.

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).