Little interest in European bonds

Fixed income fund managers are generally unexcited about the prospects for European bonds, seeing better opportunities in the US and the UK. Geoffrey Lunt, fund manager for the Investec Asset Management European Bond fund, a e40m fund that is part of a Guernsey-based umbrella structure, says: "The interest rate cycle in Europe has still some way to go before it peaks. In the US and the UK, the top is nearer." GDP growth in Europe is accelerating along with inflation and the European Central Bank (ECB) is faced with inflation rates well above the 2% ceiling it has imposed upon itself. Lu...