Senior Fund Manager, Fixed Income
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.
LF Canlife UK Government Bond Fund
For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectuses.
How the Fund is managed
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.
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 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-duration bonds aren’t purely a defensive play. Mike Count, manager of the LF Canlife Short Duration Corporate Bond Fund, sees selective opportunities for attractive returns among recovery and growth names.