Gilts/bonds start losing attractions

By James Foster, manager of the Isis Extra Income Bond Fund Although gilts and investment grade bonds have undoubtedly offered beleaguered investors the best of a bad lot over the past three years, it seems their run as the outstanding asset class may be coming to an end. For all their ferocity, the events of 11 September were at least quantifiable ' the market could eventually draw a line under them. But when, post-Enron, it emerged that investors could no longer trust the numbers, they could not begin to quantify what the damage might be, it signaled another surge of funds into t...