There is every likelihood bond yields will eventually trend higher and revert to our estimate of fair value, but we cannot predict (nor can anyone) the path or timing.
The danger here is trying to time the market by exiting bonds in an attempt to re-enter when interest rates normalise. Additionally, even with a muted return outlook, we think bonds play a valuable role...
Countdown to 31 October
Caught in crossfire following Equity Income fund suspension
Liquidated in 2012
OCF of 0.10%