Bonds and cash beat equities

Over the past year, investment grade corporate bonds have provided a better total return than any other asset class, according to figures obtained from Lipper. In the year to 28 September 2001, corporate bonds returned on average 6.05% on a bid to bid net income reinvested basis. This is almost double the total return of the next best performing asset class, cash, which returned 3.54% over the same period and basis. An investment in UK gilts 12 months ago would have delivered a return of 3.22%, again on a bid to bid net income reinvested basis. Figures for other major asset classes m...