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Home > Investments > Fixed Income

By Aimee Steen | Published Sep 03, 2012

Top 5/Bottom 5: Strategic bond funds

The hunt for income continues for many investors as capital growth continues to prove an elusive beast.

Strategic bond funds have proved popular with investors looking to secure a bond-like income stream with the flexibility to chase the best performers in the market.

The sector was third most popular with retail investors in July 2012 with £109m in sales. It came behind £ Corporate Bond and Mixed Investment 20-60% Shares.

Performance by strategic corporate bonds is positive over one year across the board. The top figure comes from the UBS Inflation Linked Bond UK Plus with a return of £1,227 on an initial investment of £1,000 over one year.

Two other funds from the same investment house, the UBS Long Dated Fixed Interest UK Plus fund and the UBS Long Dated Corporate Bond UK Plus, with returns of £1,194 and £1,181 respectively.

Even the bottom five performers made a positive return over 12 months, something that cannot be said for most other IMA sectors. The lowest performer, the Premier Strategic High Income Bond fund, returned £1,028 on £1,000.

The average one year return across the whole sector is £1,111, a very healthy return for any investor in today’s market.

Top/Bottom five IMA £ Strategic bond funds, one year performance

Top 5

UBS Infl Linked Bd UK Plus K


AXA Sterling Long Bond


UBS Lg Dated Fxd-Int UK Plus


UBS Lg Dated Corp Bd UK Plus


IP Tactical Bond


Bottom 5

Premier Strategic High Income Bond


M&G UK Infl Lnkd Corp Bond


DFAS Oakley Strategic Bond


UBS Active Bond


Rothschild Preferred Income A2002


Sector average


Based on £1,000 initial investment, to 3 September 2012 on cumulative basis

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