The Pension 2 Fixed Interest Fund is mainly invested in UK government securities. The Fund also invests in other UK fixed interest stocks such as corporate bonds and in general will have some exposure to overseas bond markets. Our investment team will continuously assess the prospects for specific fixed interest markets, and will vary the proportions held according to the opportunities identified.
Although the income from fixed interest stocks is fixed, the price of the underlying assets can go down as well as up.
Corporate bonds are similar to government securities but are issued by companies as a way of raising money.