Multi-asset allocation views - A silver lining for gilts?

Over the last 12 months, in what has been a challenging period for fixed income, the UK has faced particular difficulties, highlighting the importance of a globally diversified portfolio. After the shambolic mini-budget last Autumn, the UK has returned to more mainstream and market-friendly economic management. Yet the returns on UK gilts compared to US Treasuries have not improved. Looking at one-year returns, gilts have underperformed US Treasuries by seven per cent and German bunds by about five per cent. In other words, if an investor had bought gilts at the expense of US Treasuries at...