Why gilts still have a place
Gilts still play an important role in a portfolio but it is a small one, argues FundCalibre’s Juliet Schooling-Latter, and most likely shouldn’t be played by a gilt-only fund.
Gilts still play an important role in a portfolio but it is a small one, argues FundCalibre’s Juliet Schooling-Latter, and most likely shouldn’t be played by a gilt-only fund.
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In between the “yes” and “no” votes in Scotland, and the stick or twist spats within the MPC, are a whole lot of maybes; and we all know how markets respond to uncertainty.
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The volatile mix of global divergence in monetary policy and some highly charged geopolitical hotspots should give fixed income fund managers plenty to think about over the coming weeks.
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AXA Investment Managers is closing its £7.3m Sterling Gilt Fund as of 8 September.
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Three products listed on the LSE offer investors exposure to the UK, US and Japan.
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While there is an improving macro environment either side of the Atlantic, Nick Hayes explains why he thinks they are moving at different speeds for different reasons and where he is looking to allocate as a result.
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Ireland’s exit from ‘troika’ bailout programme has been followed by the issue of the country’s first government bond – perking investor’s interest.
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Caution still prevails for many investors, but the traditional fixed income asset classes of sovereign and corporate debt couldn't be more out of favour.
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M&G's Anthony Doyle admits 20/20 hindsight is a wonderful thing, but can you guess the government bond returns that have come out top over the past three years?
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So George Osborne has been stripped of his prefect’s badge and told to brush up on his maths skills. What he, and the coalition government, chooses to do now is anyone’s guess. The path for investors is at last clear though…
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The number of UK-based investment professionals who feel corporate bonds are overpriced has doubled in the past year.
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Outwardly it may not make sense for investors to continue ploughing money into government bonds, particularly gilts, but given the lack of any strong, reliable, steady – dare I say 'safe' – alternative they will continue to thrive.
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