Three things your clients will call you about this week

Portfolios put at risk by bonds Investors with “defensive” portfolios have been warned their investments may be taking too much inflation risk. Model portfolios aimed at low-risk investors by Prudential, Standard Life Investments and Skandia have more than 50% in gilts or corporate bonds, which the Financial Times reported are becoming less attractive when inflation is rising while the income they pay is fixed. Furthermore, when interest rates are hiked to combat inflation, prices of corporate bonds tend to drop, meaning there is also a risk to capital. Advisers say many investors do n...