High Yield Bond Funds
Compare High Yield Bond Funds
With interest rates as low as they are income seeking investors may want to consider the merits of high yield bond funds. High yield bonds 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 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 have been assessed by an independent research company OBSR and have at least a one star rating and no initial charge.
|Fund Manager||Fund||Fund Manager Initial Charge¹||AMC³||Income Yield*||Select Fund°||Fact Sheet||How to Invest|
|Threadneedle High Yield Bond||0%||0.60%||5.70%||Factsheet||More 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.|
|Kames High Yield Bond||0%||0.75%||5.52%||Factsheet||More 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.|
*Current Income Yields are Gross, Variable and Not Guaranteed as at 17/10/13 - See Fund Factsheet for 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.
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.