Our Gilt Saver Service offers a managed portfolio of directly held bonds that aims to provide a predictable return while maintaining a low volatility of capital.
Designed for those seeking a predictable and attractive return on their investments, this Service is ideal for clients who may require easy access to their funds, have a shorter time horizon, or have a specific foreseeable call on capital.
This Service may also be suitable for higher and additional rate taxpayers looking for a tax-efficient way to invest, investors looking to diversify their portfolio or more cautious investors looking for a low-volatility investment solution.
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Capital at Risk
Please do remember that as with all investments, your capital is at risk. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
What is included with our Gilt Saver Service?
Our Gilt Saver Service provides investors with a managed portfolio of directly held UK Treasury gilts, which may also include other categories of bonds with the aim of earning a higher return and adding greater diversification. These categories of bonds are:
- UK government treasury bills (T-bills)
- Short-dated supranational bonds
- Short-dated bonds issued by government-guaranteed organisations
What is unique about our Gilt Saver Service?
Our Gilt Saver Service aims to provides an attractive and predictable level of return with a low volatility of capital by investing in high-quality bonds in the sterling market. In order to maintain a low volatility of capital, we invest in short-dated bonds where both credit and duration risk are low.
We aim to select the most tax-efficient bonds for inclusion in portfolios, and some of these may benefit from qualifying status, which means they are exempt from Capital Gains Tax (CGT).
The Service gives you complete visibility over each bond in your portfolio, including regular coupon payments and capital repayment at maturity.
Due to their expertise and networks, our dedicated and specialist team can invest in parts of the market typically not accessible to private investors, such as UK Treasury Bills, supranational bonds or bonds issued by government-backed issuers.
Our Gilt Saver Service Manager
Mateusz Malek, CFA, Partner, Head of Bond Research
Mat joined Killik & Co in 2011 and is our Head of Bond Research. He graduated with a Master’s Degree in Accounting and Finance at the University of Warsaw, Poland and holds the Chartered Financial Analyst (CFA) designation. Mat has extensive knowledge of the fixed income market and regularly features in our flagship magazine Confidant. Since 2013 he has been running our Fixed Income Strategy and, in 2023, he was responsible for the launch of our Gilt Saver Service.
How our Gilt Saver Service works
Our dedicated Fixed Income team manages the Gilt Saver Service and pursues an actively managed investment strategy, researching and buying bonds that they believe will provide a predictable return and low volatility of capital. In order to achieve this goal, the Fixed Income team has the discretion to allocate the assets among a range of market sectors and individual securities.
The Service concentrates on investing in the UK government bond sector, aiming to invest at least 50% of each portfolio in bonds or treasury bills issued by the UK government.
Clients can benefit equally from incorporating the Gilt Saver Service into their existing portfolio of investments or opting for it purely as a standalone service.
Risks to be aware of
As is the nature of investing, there are risks involved when investing in bonds.
Bonds are negotiable and consequently, prices as well as yields, can fluctuate from issue until redemption. The value of debt securities may change depending on economic and interest rate conditions as well as the creditworthiness of the issuer.
Issuers of debt securities may fail to meet payment obligations, or the credit rating of debt securities may be downgraded.
For some bonds, secondary market liquidity may be thin, the spread between the selling (bid) and buying (offer) price may be wide and there may be occasions where it is not possible to immediately sell a bond to protect against falling prices.
Unlike a bank or building society deposit, a corporate bond is not covered by the UK Depositor Protection Scheme under the Financial Services Compensation Scheme (FSCS).
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