Peter Doherty: Bond investing in inflationary times

Investors have had a tough time of late. The search for investment's ‘Holy Grail' - a portfolio designed to return above-inflation rates while simultaneously protecting the investor's hard-earned capital - has taxed the best City investment manager minds for the past 12 months.  A perfect storm of creeping inflation, coupled with ultra-low base rates - a mechanism firmly maintained by the Bank of England's Monetary Policy Committee as a continuing firewall almost a decade on from the financial crisis - has effectively repressed returns from ‘ordinary' investors' portfolios. At times l...