Sterling Bonds Rated Funds

Sterling bond funds focus primarily on government and corporate bonds issued in sterling, mainly from UK-based entities. These tend to come in three main guises: 'gilts', issued by the UK government; investment-grade corporate bonds, issued by blue-chip companies; and 'high yield' bonds, issued by higher-risk companies or issues that are classified as subordinated debt.

Government bonds and investment-grade corporate bonds tend to do better at times of weaker economic growth. High-yield bonds do better at times of robust growth, when default rates for companies are lower.

Bond investors could face challenges in 2018. Mainstream government and corporate bond markets have been driven by low interest rates and central bank bond-buying activity in recent years. This has resulted in high prices and low yields (these move inversely to each other). As interest rates start to rise and quantitative easing is withdrawn, investors may see yields rise and prices fall, with possible capital losses.

Some of our 10 actively managed Rated Funds in the Sterling Bonds asset group focus on high-yield bonds or invest in parts of the market that stand to do well amid rising rates. Others take a more cautious approach or are flexible funds, giving the manager a 'go anywhere' mandate.

Five rated passive funds make up the sterling bond roster.

STERLING BONDSBrowse other rated fund groups
Fund & Sector
Rated Funds Group
1 Month Perf.
1 Year Perf.
3 Year Perf.
5 Year Perf.
Royal London Stg ExYdBd
FO Fixed Int - GBP High Yield
View Factsheet
STERLING BONDS0.7%
1 / 5
8.1%
1 / 4
25.2%
1 / 4
46.4%
1 / 3
GAM Star Crd Opp GBP
FO Fixed Int - GBP
View Factsheet
STERLING BONDS1.2%
1 / 15
7.6%
2 / 15
24.3%
1 / 10
57.1%
1 / 10
Artemis High Income
UT Sterling Strategic Bond
View Factsheet
STERLING BONDS0.9%
4 / 85
5.9%
3 / 81
15.2%
4 / 75
35.5%
3 / 69
Rathbone Ethical Bond
UT Sterling Corporate Bond
View Factsheet
STERLING BONDS0.5%
1 / 95
5.1%
1 / 94
15.2%
3 / 83
33.1%
6 / 75
AXA Framlington Mgd Inc
UT Sterling Strategic Bond
View Factsheet
STERLING BONDS0.6%
7 / 85
4.6%
11 / 81
16.3%
2 / 75
34.9%
4 / 69
Invesco Perp Mthly Inc Plus
UT Sterling Strategic Bond
View Factsheet
STERLING BONDS0.5%
9 / 85
4.5%
12 / 81
10.7%
24 / 75
26.5%
12 / 69
Baillie Gifford Corp Bd
UT Sterling Strategic Bond
View Factsheet
STERLING BONDS-0%
47 / 85
3.9%
15 / 81
13.7%
10 / 75
28.5%
9 / 69
M&G Corporate Bond
UT Sterling Corporate Bond
View Factsheet
STERLING BONDS0.1%
32 / 95
1.5%
25 / 94
9.2%
49 / 83
22.4%
36 / 75
Jupiter Strategic Bond
UT Sterling Strategic Bond
View Factsheet
STERLING BONDS-0.4%
65 / 85
0.8%
51 / 81
8.2%
44 / 75
21.6%
25 / 69
Fidelity Moneybld Income
UT Sterling Corporate Bond
View Factsheet
STERLING BONDS-0.1%
60 / 95
0.8%
49 / 94
8.3%
58 / 83
20.7%
47 / 75
Data provided by
Reviewed 01 April 2018

Rated Funds Update: Rated Funds 2018

Review: first quarter of 2018

Representative government and corporate bond indices suffered minor falls of up to -1.2 per cent over the quarter. 

That performance is broadly reflected among the Rated Funds in the group, although funds pursuing high yield strategies tended to perform marginally better than others, notably Schroder High Yield Opportunities, which has a portfolio yield of 6 per cent. 

Regular income-payers Axa Framlington Managed Income (yield 5 per cent) and Artemis High Income (yield 5.3 per cent) also held up well on a total return (income reinvested) basis.

No funds or trusts under review

View a full list of our Rated Funds 2018 here