Home Alone: Should UK Investors Expand Their Universe?

Restricting an investment universe to only sterling denominated securities can produce strong returns but they are likely to be volatile and heavily dependent on the stage of the BoE’s policy cycle. With interest rates at historical lows and the MPC becoming reluctant to continue expanding the Bank’s balance sheet it looks unlikely that the strong returns enjoyed by UK fixed income over the past 20 years will be repeated.

Senior Fixed Income Strategist