Why investors with long standing gilt holdings are feeling smug

clock • 5 min read

While gilts have provided a safe haven for investors in tough times, funds in the sector will not offer that same protection as global monetary policies shift. Paul Burgin reports.

Those retail investors who have held UK gilt funds since the worst of the financial crisis in 2008 should be feeling fairly smug. Capital appreciation has been strong as yields have fallen. Global bonds and sterling corporate bonds may have performed better on average over the last five years, but the UK Gilts sector still produced total returns of 32.9% with a far less volatile trajectory...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Fixed Income

Fed rate cuts: The right or wrong time to buy fixed income?

Fed rate cuts: The right or wrong time to buy fixed income?

The reality for fixed income is complicated

Darius McDermott
clock 02 October 2024 • 4 min read
Buyer's remorse? David Roberts' bond market insights

Buyer's remorse? David Roberts' bond market insights

The best time to catch a falling knife is after it has hit the ground

David Roberts
clock 28 May 2024 • 5 min read
Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

Partner Insight: Vanguard's Fixed Income Update - Yields decline on dovish Fed rhetoric in November

The key themes in global bond markets over the past month.

Kunal Mehta, Head of Fixed Income Specialist Team, Vanguard, Europe and Suparna Sampath, Fixed Income Product Specialist, Vanguard, Europe
clock 01 February 2024 • 8 min read