Gilts set to underperform

ow is the time to avoid gilts as they are destined to underperform other fixed interest asset classes. That is the view of Marino Valensise, head of the fixed income and credit team at Baring Asset Management. Valensise believes gilts and Treasuries should be underweighted in favour of their European equivalents. Those wanting UK exposure should opt for UK index-linked gilts, he said. 'If you want to hold government bonds, you need to be in Europe,' Valensise told delegates at Investment Week's conference in Portugal earlier this month. 'The potential for economic recovery is much ...