Latest Investment Fund News

Jupiter launches new fund

James Caldwell / 03 May 2012

Jupiter have launched a new fund with a focus on capital growth and low volatility. The Jupiter Strategic Reserve Fund is to be managed by the highly regarded investment multi asset team of Mile Gel... Read more

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David Hughes / 20 February 2012

With the ISA season well and truly upon us, now is the time to consider all of the options available. We therefore give you a detailed round-up of our selection of the best that the market has to of... Read more

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David Hughes / 06 February 2012

Cautious Managed funds maintained their stronghold on the investment funds market last month, accounting for over 52 per cent of net sales according to the latest sales trends figures from Cofunds, ... Read more

Corporate Bond Funds

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Compare Corporate Bond Funds

With interest rates as low as they are income seeking investors may want to consider the merits of corporate bond funds. Corporate bonds offer the potential for higher income than from cash on deposit although you need to be comfortable with the associated investment risk.

Investing in a corporate bond fund offers investors:

  • Regular Income - Many funds offer either monthly or quarterly income options. If you invest in an ISA, income can be distributed to you tax free or if you prefer some funds allow you to accumultate the income within the fund by buying more units to provide capital growth.
  • Diversification - a typical corporate bond fund will invest in 40 institutions or more reducing the risk to investors in the event of a default of a bond issuer.
  • Potential for capital growth - providing a lower risk than equity investment.
  • Fund manager expertise - Our select fund range of corporate bond funds have been assessed by an independent research company OBSR and have at least a one star rating.
Select Growth Funds - Corporate Bonds
Fund ManagerFundFund Manager Initial Charge¹Your SavingSaving On ISA²AMC³Income Yield*Select Fund°Fact SheetApply Now
Invesco Perpetual Corporate Bond0%5.00%£5341.00% 0.90%5.54%yesFactsheetMore Info >
Income Paid Twice Yearly. The Invesco Perpetual Corporate Bond Fund aims achieve a high level of overall return, with relative security of capital. It intends to invest primarily in fixed interest securities. See latest fund factsheet for details.
Sterling Corporate Bond0%4.50%£4801.00% 0.90%4.83%yesFactsheetMore Info >
The primary investment objective is to maximise total return (income plus capital) by investing mainly in sterling denominated bonds, encompassing investment grade corporate bonds, government bonds and cash. See latest fund factsheet for details.
Strategic Corporate Bond0%3.00%£3201.00% 0.90%4.30%yesFactsheetMore Info >
The Fund aims to maximise total return (the combination of income and growth of capital). See latest fund factsheet for details.
M&G Corporate Bond0%3.00%£3201.00% 0.90%3.91%yesFactsheetMore Info >
The Fund aims to achieve a higher total return (the combination of income and growth of capital) from investment than would be obtainable in UK government fixed interest securities (ie gilts) of similar maturities. See latest fund factsheet for details.
Ethical Corporate Bond0%4.50%£4801.00% 0.90%4.40%yesFactsheetMore Info >
The primary investment objective is to maximise total return (income plus capital) by investing in sterling denominated bonds issued by a company or organisation which meets the funds predefined ethical criteria. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 28/02/12 - See Fund Factsheet for details.

¹The Initial Charge after 100% of the Fair Investment Company Charge has been rebated as well as any fund manager discounts we can pass on to you if applicable.

²Based on 2011/12 ISA allowance of £10,680 when you invest through Fair Investment Company.

³AMC is the Annual Management Charge applied by the Fund Manager. By using our Fund Supermarket we can rebate up to 0.20% of the AMC back to you. This rebate is paid into a cash account which is set up for you when you first invest.

°Select Fund - Has a OBSR A Star Rating or more and a 100% initial charge discount.

 

Bonds: To provide the potential for overall returns these funds invest in bonds, also known as fixed interest securities. This is achieved by receiving regular interest on loans to companies or governments. There is a chance the bond issuer could fall into financial difficulty and will not be able to pay the interest or the loan back, which could result in a fall in your investment returns. Bonds can also be sensitive to trends in interest rate movements and if interest rates go up, the returns on your investment are likely to fall as bonds can become less attractive. On the other hand, if interest rates fall, bonds are likely to become more attractive and your investment returns increase.

Growth Select Funds - Strategic Bonds
Fund ManagerFundFund Manager Initial Charge¹Your SavingSaving On ISA²AMC³Income Yield*Select Fund°Fact SheetApply Now
Invesco Perpetual Monthly Income Plus0%5%£5341.25% 1.05%7.01%yesFactsheetMore Info >
Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Dynamic Bond Trust0%3.00%£3201.25% 1.15%5.30%yesFactsheetMore Info >
The fund aims to generate an attractive return from fixed income markets investing in investment grade bonds, high yield, gilts and cash and uses derivatives extensively to manage the fund's position and risk profile. See latest fund factsheet for details.
M&G Optimal Income0%4.00%£4271.25% 1.15%4.67%yesFactsheetMore Info >
The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
Strategic Bond 0%4.50%£4801.25% 1.15%4.42%yesFactsheetMore Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
Strategic Bond0%3.50%£3731.00% 0.90%4.36%yesFactsheetMore Info >
To maximise returns by investing primarily in a global portfolio of fixed and floating rate debt securities. The fund manager aims to outperform cash by an average of 3% pa (net) over the market cycle by investing dynamically across the fixed income sector. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 28/02/12 - See Fund Factsheet for details.

¹The Initial Charge after 100% of the Fair Investment Company Charge has been rebated as well as any fund manager discounts we can pass on to you if applicable.

²Based on 2011/12 ISA allowance of £10,680 when you invest through Fair Investment Company.

³AMC is the Annual Management Charge applied by the Fund Manager. By using our Fund Supermarket we can rebate up to 0.20% of the AMC back to you. This rebate is paid into a cash account which is set up for you when you first invest.

°Select Fund - Has a OBSR A Star Rating or more and a 100% initial charge discount.

 

Bonds: To provide the potential for overall returns these funds invest in bonds, also known as fixed interest securities. This is achieved by receiving regular interest on loans to companies or governments. There is a chance the bond issuer could fall into financial difficulty and will not be able to pay the interest or the loan back, which could result in a fall in your investment returns. Bonds can also be sensitive to trends in interest rate movements and if interest rates go up, the returns on your investment are likely to fall as bonds can become less attractive. On the other hand, if interest rates fall, bonds are likely to become more attractive and your investment returns increase.

Growth Select Funds - High Yield Bonds
Fund ManagerFundFund Manager Initial Charge¹Your SavingSaving On ISA²AMC³Income Yield*Select Fund°Fact SheetApply Now
Aberdeen High Yield Bond0%4.25%£4531.50% 1.30%9.00%yesFactsheetMore Info >
Attractive level of income with the opportunity for some long-term capital return by investing in non-investment grade debt and debt related securities issued by companies, governments, government related bodies and supranational institutions domiciled or active in the UK or Europe. See latest fund factsheet for details.
High Yield Bond0%4.50%£4801.00% 0.90%7.54%yesFactsheetMore Info >
The primary investment objective is to maximise total return(income plus capital) by investing in a portfolio of predominately high yield bonds, selected investment grade bonds and cash. The fund may hold sterling and other currency denominated bonds hedged back to sterling. The fund may also invest in deposits, money market instruments, derivative instruments and forward transactions. See latest fund factsheet for details.
Standard Life Investments Higher Income0%4.00%£4271.00% 0.90%6.54%yesFactsheetMore Info >
Fund aims to provide a significantly higher level of income than that available on gilts by investing mainly in Sterling and Euro denominated sub investment grade corporate bonds. See latest fund factsheet for details.
M&G High Yield Corporate Bond 0%3.00%£3201.25% 1.15%1.00%yesFactsheetMore Info >
The fund is designed to maximise total return while generating a high income. The fund invests in high yielding bonds with a minimum in sub investment grade issues. See latest fund factsheet for details.
High Yield Bond 0%3.75%£4001.25% 1.15%7.70%yesFactsheetMore Info >
Income Paid Monthly. Principally invests in higher risk UK and international fixed interest securities to achieve a high level of income which is paid on a monthly basis. See latest fund factsheet for details.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 28/02/12 - See Fund Factsheet for details.

¹The Initial Charge after 100% of the Fair Investment Company Charge has been rebated as well as any fund manager discounts we can pass on to you if applicable.

²Based on 2011/12 ISA allowance of £10,680 when you invest through Fair Investment Company.

³AMC is the Annual Management Charge applied by the Fund Manager. By using our Fund Supermarket we can rebate up to 0.20% of the AMC back to you. This rebate is paid into a cash account which is set up for you when you first invest.

°Select Fund - Has a OBSR A Star Rating or more and a 100% initial charge discount.

 

High Yield Bonds: These funds invests in riskier bonds, known as sub-investment grade bonds. These bonds pay higher interest rates, to try to provide more attractive income returns. To achieve this, greater risk is taken as the companies are more likely to miss payments or not repay the loan, resulting in the returns on your investment falling.

By investing in a corporate bond fund, you are investing in the corporate bonds of a number of companies (potentially 50 company bonds or more). The fund managers of a corporate bond fund will either buy corporate bonds when they are first issued or on the secondary market. Bonds could be held until redemption or resold on the second hand market. However, whilst they are held within the fund, you will be entitled to receive the interest.

Despite individual corporate bond funds being a fixed interest investment, there is still some risk involved as bond prices can rise and fall and there is a chance that the original capital for a particular issue may be lost if that particular company fails and is the bond issuer is unable to repay the original loan. However, this risk is minimised within a corporate bond fund compared to holding the corporate bonds of a single company, as the fund will hold the bonds of a large number of companies.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

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