PA Portfolio: Is it time for investors to look again at gilts?

Stephanie Carbonneil, senior investment manager, Architas Across multi-asset portfolios, the macroeconomic backdrop is still supportive of an overweight to cyclical assets and an underweight to government bonds. In the UK, manufacturing and services surveys indicate continued expansion, unemployment has fallen below 7% and the key leading indicators are consistent, with a 3% to 3.5% GDP growth rate for 2014, with Q1 already on track. Against this positive backdrop, however, inflation remains benign because of the UK's post-crisis economic slack, as well as weak commodity prices that ar...