High Yield Bond Income Funds

Compare High Yield Bond Income Funds

High yield bond income funds 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 high yield bond income 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  bond funds for income have been assessed by an independent research company Morningstar OBSR.
Select Income Funds - High Yield Bonds
Fund ManagerFundFund Manager Initial Charge¹AMC³Income Yield*Select Fund°Fact SheetHow to Invest
Aberdeen High Yield Bond0%0.50%6.77%yesFactsheetApply Now >
Income Paid Monthly. 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.
Threadneedle High Yield Bond 0%0.60%5.70%yesFactsheetApply Now >
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.
Kames High Yield Bond0%0.75%4.99%yesFactsheetApply Now >
Income Paid Monthly. 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.

*Current Income Yields are Gross, Variable and Not Guaranteed as at 28/2/14 - See Fund Factsheet for latest details.

³AMC is the Annual Management Charge applied by the Fund Manager. 

°Select Fund - See how our funds are selected 

 

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 high yield bond fund, you are investing in the bonds of a number of companies, governments or other institutions (potentially 50 institutional bonds or more). The fund managers of a bond fund will either buy bonds when they are first issued or on the secondary market. Bonds could be held until redemption or resold on the second hand market.

 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.