UK gilts benefit from equities' woes

In troubled times for UK equities, the UK gilt sector has been a haven for investors looking for safe and steady returns. On average, it has returned 14.99% over three years to 31 July, compared to the UK All Companies sector, which returned -21.56%. Indeed, over one year, the sector has also outperformed the corporate bond sector, returning 4.69% compared to the corporate bond sector average return of 2.91%, on an offer-to-bid basis. As a result, equities are historically cheap relative to gilts as investors have been moving away from riskier assets. Andrew Argyle, manager of the S...