UK Government Bonds - A gift for the active manager?

The current 10 year UK Gilt was issued in February 2025

• Since launch, yields have risen slightly – from around 4.6% to 4.7%
• A passive fund buying at launch would have gained around 1% since, the income offsetting a small degree of capital loss
• Since February, the bond yield has risen or fallen by more than 20 basis points NINE times
• 20 basis points in yield is about 2% in price

An ACTIVE manager has had at least 9 opportunities to make DOUBLE the return of a passive alternative.

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The opinions expressed within the article are considered to be correct and informed at the time of writing, but may be subject to change or amendment at the discretion of the Investment Manager without notice.

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