UK Government Bonds - A gift for the active manager?
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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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