Bond investors told: go global

Professional Adviser
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STERLING bond returns are average at present so investors should look abroad, says Fidelity.

Andy Weir, fixed income portfolio manager at Fidelity, said: “Sterling is throwing up challenges for bond investors across the board. "There are simply fewer investment opportunities, measured by the number of investment grade corporate bond issues, the euro market is over three times larger than sterling and the US dollar market is nearly four time larger. “Growth has been relatively moribund- the value of the sterling market grew 247pc in the ten years to the end of 2006 compared to a 320pc growth in euro bonds.” Another reason sterling is less appealing is the number of interest rate...

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