These two sub asset classes, investing solely in the debt of the UK government, have traditionally delivered steady income to investors, with investors able to receive either a fixed rate of income in the gilt market or an inflation adjusted income in the index linked market. Combine these income streams with the negatively correlated capital returns both sub asset classes have provided when equity markets have fallen and it is easy to see why the sectors have traditionally been a key component of diversified portfolios for UK investors.

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