The case for gilts

Britain is not alone in Europe in having to face up to huge deficits, falling taxes, rising unemployment and concerns about inflation. Such conditions should normally hail a weak outlook for the gilt market as supply outstrips demand. But unlike peripheral countries such as Ireland and Greece, Britain has more flexibility by not being tied to the euro. Making early plans to slash spending has also helped bolster Britain’s position in sovereign debt markets. The average IMA Gilt fund grew 4.34% in the year to the end of October. According to Lipper data, all funds experienced capital grow...