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...
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