Hung parliament: what investors should do with their portfolios

Sell gilts and corporate bonds A downgrade of the UK credit rating will force gilt prices down, which raises the income yield, reflecting the increased risk of the UK Government defaulting on its debt. This will have a knock-on effect for corporate bonds. To avoid this we suggest investors look at strategic bond funds where the manager will be able to move to areas in the sector less sensitive to the UK credit rating. Recommendation: Legal-general-dynamic-bond. Sell UK small companies and buy FTSE 100 UK smaller companies are more geared towards domestic growth and earnings, and t...