Bonds prove popular in turbulent markets

Boots, the high street chemist caused a stir last year. But it was not a new range of cosmetics or a fantastic product launch. It was not a huge growth in stores or meteoric profits nor an acquisition or merger. Remarkably, it was Boots' decision to move its £2.3bn pension fund from equities into bonds. The move was not entirely surprising ' bonds had been offering improving returns since the summer of 2000, at a time when equity markets were hit by post dot.com uncertainty and atypical world events. In particular, investment grade corporate bonds (rated BBB or above) have outperformed g...