Bond and gilt fund | Virgin Money UK

At a glance

Potential for better growth than cash savings by investing in bonds, aiming for modest returns and income.

Our experts invest your money using Environmental, Social, and Governance (ESG) considerations to help select which bonds to invest in.

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Highlights

Reduces risk

Likely to be a less 'bumpy ride', compared to higher risk investments.

Generate income

Any interest can be re-invested or withdrawn every six months - useful if you need an income from your savings.

All done for you

Managed for you by our dedicated team of investment experts.

How your money's invested

This fund invests 100% in bonds, which typically means lower potential returns and lower risk than shares.

Typical mix

Around 40-50% GBP denominated bonds with strong credit ratings
Up to 10% in higher yielding bonds with less strong credit ratings
The rest in government bonds, mostly UK

Remember, the value of investments can go up and down, so you may get back less money than you put in. Tax depends on your individual circumstances and the regulations may change in the future.

How the fund invests

Our experts select bonds to invest in to provide a diversified mix of geographies, corporate and government bonds whilst taking into account ESG considerations.

Top bonds

The following is up-to-date as of 31 March 2024.

Amount invested	Bond
48.7%	UK Treasury*
1.2%	Vodafone Group 5.9% 2032
0.8%	Telefonica Emisiones SAU 5.445% 2029
0.7%	European Investment Bank 3.875% 2037
0.7%	Barclays Plc 8.41% 2032
0.7%	National Grid Electricity Transmission Plc 2.75% 2035
0.7%	Northumbrian Water Finance Plc 5.625% 2033
0.7%	Morgan Stanley 5.789% 2033
0.6%	KPN 5.75% 2029
0.6%	Barclays Plc 6.369% 2031

*The total value invested in UK Treasury Bonds (Gilts), split across 5 to 15 year maturities

Which regions?

Amount invested	Region
81.2%	UK
11.2%	Europe (excluding UK)
6.3%	North America
0.8%	Asia Pacific
0.5%	Latin America

What you could've earned already

The graph below gives you an indication of how much you could've earned, after charges, if you had invested £10,000 in this approach five years ago. Remember, past performance isn't a reliable guide to future performance.

The following is up-to-date as of 31 March 2024.

Key:

Bond Fund

Benchmark

£7.5k

£10k

£12.5k

£15k

Mar-19: £10,000

Mar-19: £10,000

2019
Apr-19: £9,913

Apr-19: £9,912
May-19: £10,091

May-19: £10,097
Jun-19: £10,154

Jun-19: £10,164
Jul-19: £10,340

Jul-19: £10,355
Aug-19: £10,465

Aug-19: £10,500
Sep-19: £10,467

Sep-19: £10,503
Oct-19: £10,381

Oct-19: £10,417
Nov-19: £10,330

Nov-19: £10,366
Dec-19: £10,256

Dec-19: £10,300
Jan-20: £10,496

Jan-20: £10,542

2020
Feb-20: £10,537

Feb-20: £10,587
Mar-20: £10,340

Mar-20: £10,390
Apr-20: £10,563

Apr-20: £10,617
May-20: £10,650

May-20: £10,707
Jun-20: £10,715

Jun-20: £10,773
Jul-20: £10,802

Jul-20: £10,873
Aug-20: £10,674

Aug-20: £10,747
Sep-20: £10,745

Sep-20: £10,820
Oct-20: £10,739

Oct-20: £10,818
Nov-20: £10,764

Nov-20: £10,835
Dec-20: £10,876

Dec-20: £10,957
Jan-21: £10,777

Jan-21: £10,861

2021
Feb-21: £10,408

Feb-21: £10,492
Mar-21: £10,371

Mar-21: £10,466
Apr-21: £10,395

Apr-21: £10,488
May-21: £10,436

May-21: £10,530
Jun-21: £10,494

Jun-21: £10,593
Jul-21: £10,621

Jul-21: £10,724
Aug-21: £10,592

Aug-21: £10,691
Sep-21: £10,346

Sep-21: £10,457
Oct-21: £10,337

Oct-21: £10,435
Nov-21: £10,496

Nov-21: £10,599
Dec-21: £10,381

Dec-21: £10,491
Jan-22: £10,111

Jan-22: £10,209

2022
Feb-22: £9,988

Feb-22: £10,108
Mar-22: £9,834

Mar-22: £9,947
Apr-22: £9,615

Apr-22: £9,721
May-22: £9,532

May-22: £9,620
Jun-22: £9,330

Jun-22: £9,455
Jul-22: £9,623

Jul-22: £9,750
Aug-22: £8,959

Aug-22: £9,062
Sep-22: £8,115

Sep-22: £8,175
Oct-22: £8,499

Oct-22: £8,578
Nov-22: £8,778

Nov-22: £8,875
Dec-22: £8,537

Dec-22: £8,640
Jan-23: £8,846

Jan-23: £8,953

2023
Feb-23: £8,596

Feb-23: £8,716
Mar-23: £8,772

Mar-23: £8,885
Apr-23: £8,716

Apr-23: £8,829
May-23: £8,448

May-23: £8,578
Jun-23: £8,284

Jun-23: £8,433
Jul-23: £8,453

Jul-23: £8,592
Aug-23: £8,448

Aug-23: £8,587
Sep-23: £8,442

Sep-23: £8,597
Oct-23: £8,430

Oct-23: £8,575
Nov-23: £8,716

Nov-23: £8,860
Dec-23: £9,190

Dec-23: £9,336
Jan-24: £9,079

Jan-24: £9,201

2024
Feb-24: £8,968

Feb-24: £9,084
Mar-24: £9,156

Mar-24: £9,264

2019 2024

	March 2019 to March 2020	March 2020 to March 2021	March 2021 to March 2022	March 2022 to March 2023	March 2023 to March 2024
This fund	3.4%	0.3%	-5.2%	-10.9%	4.4%
Benchmark*	3.9%	0.7%	-5.0%	-10.7%	4.3%

*The fund aims to match or beat the performance of its benchmark (50% the FTSE 5-15 Year Gilt Index and 50% the ICE Bank of America Merrill Lynch 5-15 Year Non-Gilt Index), after charges, measured over periods of three years or more.

The annual charge changed from 0.60% to 0.30% on 6 January 2024. The performance shown is based on the current annual charge, with adjustments made to prior years to reflect the current charging structure of the fund.

Source Lipper, total return (income reinvested).