How equities and bonds can work together

The IMA UK Equity and Bond Income sector is relatively small, encompassing just 16 funds. The association defines UK Equity and Bond Income funds as those that invest at least 80% of their assets in the UK, between 20% and 80% in UK fixed interest securities and between 20% and 80% in UK equities. These funds aim to yield in excess of 120% of the FTSE All Share index. In many ways, this sector is often overlooked, as investment managers source UK equity funds and bond funds separately, then combine them accordingly. However, these funds can be useful, particularly in a smaller portfol...