Fidelity fixed income chief: Beware long-dated assets

Andrew Wells, Fidelity's global CIO for fixed income, has said this year will be about the hunt for income, but warned low interest rates and low growth will be dangerous for investors.

Laying out his view on the fixed income world at an event in London on Wednesday, Wells (pictured) said he expects interest rates and GDP to remain low for some time, but said this situation creates risks in the search for returns. "The danger is people will buy long-dated assets in this environment, and then will be hard hit when inflation comes," he said. "Inflation is likely to remain sticky on the upside. At some stage there will be very significant inflation, so investors must build inflation protection into their funds." Wells said he sees opportunities in European bonds but ...