BONDS AND WEALTH PRESERVATION
BONDS (5 FUNDS)
The sell-off that tore through the fixed-income market last year has made bonds interesting once again: valuations are much lower and yields, which move inversely to prices, finally look attractive. The yield on a 10-year UK government bond recently came to 4.4 per cent, something that has implications both for income investors and for the valuations we apply to plenty of other assets, from growth stocks to infrastructure. It’s therefore no surprise that investors have piled into bond funds, and directly into government bonds themselves, this year.