Britannic forecasts a 36% five-year return on bonds

Reliable bond funds can realistically expect to offer income-only returns in excess of 36% over the next five-year period. That was the calculation offered by David Roberts, head of credit at Britannic Asset Management, as he urged intermediaries not to believe the recent surge of press reporting that has portrayed bonds as expensive and running out of steam. Roberts told the audience if equity returns were to match his likely bond returns figure, the FTSE would have to rise to 4,700 by the end of 2007. The calculation was made on the basis of ignoring volume, assuming the same risk p...