Diversification key in uncertain future

Fund manager's comment

Excluding the rise between 1988 and 1990, interest rates in the UK have steadily declined since rea...

Excluding the rise between 1988 and 1990, interest rates in the UK have steadily declined since reaching a peak of 17% in November 1979. This, of course, has created a favourable environment for bonds, in which yields, in particular government bond yields, have fallen as interest rates have reached the lowest level in almost 50 years. The environment of declining bond yields has provided fixed income investors with good returns during a period in which the equity market has been the source of disappointment and frustration for many. In fact, over 10 years, the UK government bond market ha...