The perfect storm for global bonds

Average three-year returns to the end of July were 37%, according to Lipper data. In that period, the average Global Bond sector capital growth was at least 50% higher than that of Global Equities, UK Gilts and Asia Pacific Ex Japan, its nearest competitors. The sector has subsequently dropped down the rankings as equities rebounded, falling to fifth best performer over two years. Nevertheless, one-year performance has been robust. The sector returned 12.86% over the past year. Global Bond funds spiked as investors sought security, even though they had doubts about the ability of west...