David Arnaud
Senior Fund Manager, Fixed Income
LF Canlife UK Government Bond Fund
About the Fund
The Fund aims to provide an income and the potential for capital growth, over any five-year period, after all costs and charges have been taken. The Fund’s comparator benchmark is the Markit iBoxx GBP Gilts Index.
Essential features of the Fund
LF Canlife UK Government Bond Fund
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- The Fund invests at least 95% of its assets in sterling-denominated government and public securities (which have a credit rating that is the same or higher than the UK government’s long term rating), of which a minimum of 80% will be invested in UK government and public securities
- It may also invest up to 5% of its assets in other debt securities (such as corporate bonds, non-sterling denominated bonds), money market instruments, deposits and cash
- Investment in collective investment schemes is limited to 10% of the Fund’s assets
- The Fund may use derivatives for the purpose of efficient portfolio management
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- Up to 25% of the Fund’s holdings by value may be used to generate additional income from stock lending
For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectuses.
How the Fund is managed
- A strategy is employed for managing the fund to position for interest rate risk and opportunities
- In addition to focusing on UK economic developments, the manager monitors economic trends in other major economies, in order to form a long-term view on economic fundamentals and the outlook for government bonds
Reasons to recommend
High Quality
The Fund offers exposure to high quality UK government bonds. This asset class tends to have low correlation to equities, especially when global stock markets fall, and gilts are seen as “safe havens” The Fund may not be appropriate for investors who plan to withdraw their money within 5 years.
Conservative approach
We employ a conservative approach, focused on managing interest rate and duration risks with the aim of minimising losses when interest rates are rising.
Drawing on experience
The fixed income team at Canada Life Asset Management are able to draw on their long experience in managing UK gilts.
The value of investments may fall as well as rise and investors may not get back the amount invested
Latest Market Insights & Fund Updates
Protecting Capital in a Rising Rate Environment
The last 12 months have seen fixed income assets fall in value at different times, for different reasons. The onset of the covid-19 crisis in March 2020 saw credit spreads widen significantly, negatively impacting the performance of credit-focused bond funds as investors dashed for the safety of government bonds. These assets outperformed as yields tumbled.
Short Stories
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