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Investment Research
Gilts
Gilts are issued by the Government and are often regarded as
'tax-free'. They usually have a set life and pay coupons (interest)
every six months and are 100% guaranteed by the Government. Gilts
are traded on the secondary market and prices will fluctuate
according to short term interest rates and expectations for
inflation and the supply/demand for gilts. Gilts are not considered
to be a good inflation hedge as the rate of interest is fixed. A
low yield relative to the coupon indicates that the market expects
low inflation and low interest rates over its remaining life. Index
Linked Gilts are fixed to the Retail Price Index (RPI), not the
Consumer Price Index (CPI) and both capital and interest adjusts.
For normal non-inflation linked bonds, investors are taxed at their
marginal rate.
Short Dated Gilts (<5 yrs)
|
Short Dated Gilts (<5 yrs)
|
Gross Redemption Yield
|
As of
|
Income Yield
|
Clean Price
|
Net Real Yield at Income Tax of 20%
|
Net Real Yield at Income Tax of 40%
|
|
TREAS 5.25 07 Jun 2012
|
0.38%
|
31/01/2012
|
5.16%
|
101.70
|
-0.50
|
-1.52
|
|
TREAS 4.5 07 Mar 2013
|
0.41%
|
31/01/2012
|
4.31%
|
104.48
|
-0.32
|
-1.19
|
|
TREAS 8.0 27 Sep 2013
|
0.42%
|
31/01/2012
|
7.11%
|
112.48
|
-0.87
|
-2.34
|
|
TREAS 2.25 07 Mar 2014
|
0.36%
|
31/01/2012
|
2.16%
|
103.96
|
0.16
|
-0.28
|
Short Dated Index Linked Gilts (<5 yrs)
|
Short Dated Index Linked Gilts (<5 yrs)
|
Gross Redemption Yield
|
As of
|
Income Yield
|
Clean Price
|
Net Real Yield at Income Tax of 20%
|
Net Real Yield at Income Tax of 40%
|
|
TSY I/L 16 Aug 2013
|
0.90%
|
31/01/2012
|
2.33%
|
283.50
|
-2.67
|
-3.15
|
|
TSY I/L 26 Jul 2016
|
1.40%
|
31/01/2012
|
2.13%
|
343.32
|
-1.86
|
-2.31
|
Data supplied by Barclays Capital.
The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested.
Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors
on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are
dependent on your individual circumstances and are subject to change.
Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only
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