UK investors choose money market funds and bonds over stocks

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Reports indicate that British investors are currently selecting interest-bearing assets rather than equity funds due to high interest rates. Figures show that UK-based investors took a dim view of stocks in July, withdrawing a total of £983 million from equity funds while adding to money market funds and fixed income assets.

Big investors avoiding UK government bonds

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Reports indicate that big investors are keeping clear of gilts, also known as UK government bonds. This strategy is being adopted even though gilts offer some of the highest yields for investors in the developed world and is driven by a fear that the UK’s current inflation issues could still see borrowing costs become higher […]

British bonds rise since 2022 mini budget

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New data has revealed that the value of British bonds has risen substantially, after reaching new lows after the “mini-Budget” fiasco of September last year. According to figures supplied by the digital exchange designed for private markets, ADDX, it increased by 14.5% (£450bn) from mid-October 2022 to mid-January 2023.

Understanding government bonds

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Here in the UK, government bonds are called gilts. These bonds are an investment vehicle, which, until they expire, offer a fixed return rate. Gilts are effectively a loan from an investor to the government. The government pays out a fixed interest rate to investors until the date the bond reaches maturity.