Current yields on UK Government bonds gilts of 4.37% may not sound too impressive compared with the latest British consumer price index inflation figure of 4.4%. But that hasn't stopped gilt funds being the best fixed-interest performers over the past year, says the latest research from Standard & Poor's. Standard & Poor's fund services lead analyst Kate Hollis says most bond managers agree that the UK economy is now likely to slip into recession. In particular, she says that "Pimco believes Western central banks have hiked rates too aggressively, making recession inevitable".
That could mean present gilt yields will look like something of a bargain, which should help Amey's fund to maintain the top-decile ranking it has achieved over the last one and three years, according to Trustnet. Although, as he warned in April, for the rest of us, "sadly, the next 18 months will not be much fun".
Contact: 020-7065 1407
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Review: The Hut, Colwell Bay – a seafood lunch with a holiday feelTravel Getting to The Hut in Colwell Bay on the Isle of Wight is almost as rewarding as actually eating there
-
What is the 7 year inheritance tax rule and how does it help cut your bill?Speculation is rife chancellor Rachel Reeves has plans to target inheritance tax once again in her upcoming Budget. But the 7 year inheritance tax rule can save you thousands - here’s how it works.
