I Agree

We have updated our Privacy and Cookie Policy. By clicking "I Agree" below, you acknowledge that you accept our Privacy and Cookie Policy and Terms of Use.

PLEASE TELL US A LITTLE ABOUT YOURSELF SO THAT WE CAN DISPLAY THE MOST
APPROPRIATE CONTENT TO YOU:

This site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about cookies used on Trustnet and how you can manage them, see our Privacy and Cookie Policy.

By clicking "I Agree" below, you acknowledge that you accept our Privacy Policy and Terms of Use.

For more information Click here

Login

Register

It's look like you're leaving us

What would you like us to do with the funds you've selected

Show me all my options Forget them Save them
Customise this table
You are here: Absolute Return Bonds Guide
Search

Absolute Return Bonds Guide

Benefits

Why consider an absolute return bond fund for clients?
In today's low interest rate environment, it is particularly difficult for clients who rely on the income from their savings to generate sufficient returns for their needs. The dilemma facing investors is how to obtain higher returns than those available on bank and building society accounts, without exposing their savings to substantially greater risk.
For clients who prefer a more cautious investment approach, bond investments have traditionally proved more attractive than equities, not only because they have tended to be less volatile but because they can also provide an attractive, regular income. However, in this low interest rate climate, even the yields on bonds are less appealing than they were. Absolute return bond funds represent an innovative solution to this problem.
Absolute return bond funds are likely to appeal to clients who would like to achieve better returns than from traditional cash deposits but with a fairly low risk approach. Even so, it is important for them to remember that there is still a risk of capital loss and volatility, and that unlike bank and building society accounts they may not get back the original amount invested and that some funds are not designed as alternatives to cash accounts.
Clients may even be able to invest in an absolute return bond fund tax efficiently through a stocks and shares Mini or Maxi ISA.

Previous Section «
Next Section »

Back to top of pagetop

Data provided by FE. Care has been taken to ensure that the information is correct, but FE neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

You are currently using an old browser which will not be supported by Trustnet after 31/07/2016. To ensure you benefit from all features on the site, please update your browser.   Close