Fixed Income Security Bonds

Michael Hannon Financial Services is not an Investment Manager or Stockbroker. We offer professional advice to our customers regarding your investment and savings objectives and assess your risk profile. At this point Michael Hannon Financial Services will research the market for the most suitable investment and/or savings products to meet your financial needs and objectives.

These funds predominantly invest in government gilts from Eurozone countries. Returns, while typically modest, are significantly less volatile than equity returns. This type of fund will generally suit risk averse investors and therefore can be considered as low risk and is suitable for lump sum and regular savings plans. Gilts (or bonds as they are often referred to usually in the case of non-Government related debt) are essentially a form of debt, like a loan. Governments and large corporations use bonds to raise money for capital expenditure. The investors or those who purchase the bonds are the lenders. Where bonds are held directly the investors receive payment for the loan usually in the form of an income (or coupon) and at maturity receive their original capital back. Where investment takes place within a fund, the value of the portfolio will rise and fall (as they are tradable securities), depending on a number of factors including interest rates and inflation.