Fixed income investing
Is now a good time for fixed income investments?
Now is a good time for fixed income (or fixed interest) investments, but why? In 2022, core bond markets experienced some of the greatest annual falls in modern history. In some cases, bond prices fell so far that their market price is now well below their face value, creating the potential for attractive long-term total returns.
With signs inflation is peaking, and suggestions that interest rates will not rise much further, our investment management experts believe the outlook for fixed income markets has improved, meaning you could well make a capital gain or profit from any future recovery.
How can I invest in fixed income?
Fixed income investments are an important part of any investment strategy. Depending on your situation and financial goals, our Investment Managers can consider the best approach for you from our range of options below.
Gilt Portfolio Service
If you would like a better rate of return than from a traditional UK bank or building society, our Gilt Portfolio Service offers tax-efficient fixed interest investing through a fully tailored discretionary portfolio of UK short-dated gilts. The service is highly flexible, as we select individual gilts – as many or as few as you need – with maturity dates that match your short-term goals and plans.
Diversified investment portfolio
Your personal Investment Manager can include fixed income investments as part of a diversified investment portfolio, alongside other asset classes such as equities and alternatives, to help reduce the volatility of returns (and in turn, the risk).
Fixed Interest Portfolio Service
Our Fixed Interest Portfolio Service invests in a broadly balanced range of fixed interest funds. By blending these funds, it aims to achieve a net return of 5% per annum that will help to protect you against inflation over the medium term (five years or more).
Fixed income portfolio
Your personal Investment Manager could build a tailored portfolio of fixed income investments that is exactly suited to your needs and feelings about risk, as well as your preference for investing in sterling, US dollars or euros.
Why choose Canaccord Genuity Wealth Management for fixed income investments
We have been running fixed income portfolios for many years with our tried and tested process and investment philosophy. Our fixed income investment team have decades of collective experience investing in fixed income markets.
- Our global and flexible approach enables you to take advantage of fixed income investments from many different markets around the world
- We work hard to create predictable returns and mitigate risks for you
- You benefit from our extensive research and superb insight into fixed income markets and opportunities.
However you choose to invest in fixed income, you will have direct access to your own CGWM Investment Manager, who’ll keep you updated on a regular basis.
Webinar: why now could be a great time to invest in fixed income
In an exclusive webinar recorded on 2 March, Thomas Becket from our Chief Investment Office met with Mark Holman from TwentyFour Asset Management to discuss why fixed income investing could be an attractive alternative right now.
Fixed income investing – your questions answered
Fixed income or fixed interest investments relate to instruments issued by governments or corporates as an effective way for them to borrow money – i.e. they are a source of credit. They are designed to be a lower-risk way to generate a set amount of annual income.
Fixed income investments include:
- Government bonds – government issued debt with a set redemption date and fixed interest. Sometimes referred to as ‘sovereign debt’ internationally or as ‘gilts’ in the UK
- Corporate bonds – loans issued by corporate entities with solid balance sheets. Investors receive annual payments (coupons) and get their capital back at the end of the investment term (as long as the company does not default)
- International corporate bonds – debt issued internationally, offering attractive long-term opportunities.
Yes, fixed income investments are considered to be lower risk than many other forms of investment.
Bonds, historically have a low correlation to equity performance so can help to provide a more stable income stream in times of volatility. While fixed income investments aren’t without risk, our specialists mitigate risk further by selecting good quality fixed income funds and short-dated bonds.
How much you invest in fixed income depends on your individual circumstances and financial goals. Our Investment Managers can recommend the best way forward for you based on your situation. For our Fixed Interest Portfolio Service, there is a minimum investment of £50,000.
Investment involves risk. The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future performance.
Our Fixed Interest Portfolio Service is designed to work over a typical investment cycle of five years or more, so we recommend you stay invested for at least five years.
The information provided is not to be treated as specific advice. It has no regard for the specific investment objectives, financial situation or needs of any specific person or entity.
Book a free consultation with a fixed income investment advisor
What happens next?
1. Arranging an initial consultation
First you can expect to receive an email from our team within 48 hours to find a suitable time that works for you, to arrange a voice or video call for an initial consultation.
2. Your consultation
During this consultation, a member of the team will discuss your situation with you to understand your requirements and answer any questions you might have about Canaccord Genuity Wealth Management and the services that we provide.
3. Referral to a Wealth Planner or Investment Manager
If you decide to progress with us, you will be referred to one of our Wealth Planners or Investment Managers to discuss your situation and requirements in more detail. They will then design a bespoke proposal detailing a unique investment portfolio that matches your individual requirements and attitude to risk, to meet you and your family’s needs.
4. Working with you long-term
With our wealth planning and investment management professionals, your wealth is in expert hands. Our mission is simple - to help you build your wealth with confidence. We will always keep you informed about your investment portfolio and performance and will continue to work with you to build our relationship on your terms. We can meet with you face-to-face, by phone or by email, whichever is more convenient for you. You can also access your account online at any time through our app. Our wealth management professionals are always readily available to speak with you.
Keeping you informed
Investment involves risk and you may not get back what you invest. It’s not suitable for everyone.
Investment involves risk and is not suitable for everyone.