Absolute Return Bond Fund
Latest fund prices and yields
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How does the Absolute Return Bond Fund work?
The Absolute Return Bond Fund is a low risk investment solution which aims to achieve a long-term capital return that exceeds cash investments, regardless of market conditions.
You can invest anything from £10,000, or as little as £50 per month with our regular savings plan.
You can check your investment value online at any time with our online portfolio service, or request a paper statement.
Whenever you want to access your money, just sell some or all of your shares in the Fund — there are no penalty fees.
We have a dedicated call centre where you can speak directly to a fund representative.
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What's the level of risk?
Balanced: modest risk to capital as there may be some fluctuation in the value of the investment but potential for modest capital growth or income. Purchasing power of your money may be reduced by inflation.
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What will I be investing in?
The Absolute Return Bond Fund is a "feeder fund*", providing offshore investors with potentially more tax-efficient** access to an underlying Fund.
It feeds into the Scottish Widows Investment Partnership Investment Funds ICVC — Absolute Return Bond Fund.
This Fund invests in:
- Bonds: the Absolute Return Bond Fund buys and sells bonds with the aim of producing a consistent return while minimising the risk of capital depreciation.
- Cash: the Fund holds some of its value in cash.
- Derivatives: the investment manager uses derivatives (sometimes called futures or options) to minimise risks and potentially profit from falling markets.
Read our guide to the different types of investment.
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How long should I plan to invest for?
You should plan to invest for the medium or long term, with money that you won't need to use in the next 5 years.
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Who is the Absolute Return Bond Fund for?
Choose the Absolute Return Bond Fund if you're looking for:
- predictable returns rather than a quick gain: the Fund gives priority to providing a consistent return rather than taking larger risks in the hope of higher profits.
- a balance between high yields and protection for your investment: you want higher returns than a cash investment, while still protecting your assets.
- medium to long term growth: you're planning to invest for 5 years or more and you don't need a quick return or a guaranteed income from your investment.
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Who is the Absolute Return Bond Fund not for?
The Absolute Return Bond Fund is not the right choice if:
- you want the highest possible return: if you're willing to take on more risk for potentially higher returns, find a fund that suits you using our Savings and Investments Finder.
- you want to invest for the short term: if you plan to sell your shares within 5 years, take a look at our Money Fund.
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How to apply
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* The Lloyds TSB Funds Limited Absolute Return Bond Fund is a 'feeder fund' (a fund that is specifically set up to invest directly into an already established fund) and invests into the Scottish Widows Investment Partnership (SWIP) Investment Funds ICVC — Absolute Return Bond Fund thereby providing potentially tax efficient access**, for customers based offshore, to a fund solution offered by one of the UK's largest asset managers.
** It is your responsibility to ensure that any tax liability in relation to funds deposited is accounted for by you to your appropriate tax authorities.
Investments into Funds do not include the security of capital which is afforded under a deposit with a Bank or Building Society.
The value of shares and the income from them can go down as well as up and cannot be guaranteed. Consequently, on selling, investors may not get back the amount they originally invested.
This product is not available for general distribution in, from or into the United Kingdom because the Company is an unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000. View important information about us.