managers expect returns on government stock of 3%PA maximum over the next few years compared with the 8%PA gains of the past
The gilt sector may have been the place to invest over the past three years, but few hold out hopes for superior returns relative to equities in the years ahead. Graeme Caughey, manager of the SW Gilt fund for the past two years, expects gilts will deliver total returns of 2%-3% per annum over the next few years, compared to the 6%-8% rate enjoyed since the start of 2000. The 25 funds in the UK Gilt sector returned an average of 17.9% over the three years to the end of July. By comparison, the global growth sector made negative returns of 38.64% while the UK All Companies sector lost 2...
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