Global or UK bond index - which and why?

zagfles

dealyboy said:

@masonic vs. @zagfles next venue Madison Square Gardens  .

US? Nah they fight dirty over there, I'll stick to UK

zagfles

aroominyork said:

masonic said:

aroominyork said:

Bostonerimus1 said:

Global bond funds are more diverse than UK Gilt funds so you might thing that's an advantage as you will be insulated from a UK Government tanking the Gilt markets.

...which takes me back to my original question and dunstonh's reply https://forums.moneysavingexpert.com/discussion/comment/80467073#Comment_8046707.

I'm minded to split between a hedged corporate bond fund, a hedged global aggregate index fund and a gilt index fund (if I can find a reasonable time to sell Capital Gearing Trust which probably no longer meets my needs).

Have you surveyed the available multi-asset funds to see if there is a lower risk option with a similar asset allocation to that which you are considering? This might make things a bit simpler. ~20% in equities actually reduces volatility and increases risk adjusted return if considering the standalone bucket within your portfolio.

No need that I can see. I am 70% equities/30% fixed interest so this is not a case of needing 20% equities on the efficient frontier. I can easily re-jig my equities when I bring in those currently held within CGT. I am happy with the corporate bond fund for a bit of fizz (Man GLG Sterling Corporate, though it's hard to imagine it carrying on serving me as well as it has been - and I note your point that increased credit spreads could affect riskier bonds), and the mix of cheap global aggregate and UK gilt funds seems sensible. It is clear to me that trying to time fixed interest markets is outside my skillset - I am no masonic!

I've always thought trying to time markets is a mug's game, but the volatility of stuff that shouldn't really be volatile has got me thinking...

aroominyork

zagfles said:

aroominyork said:

masonic said:

aroominyork said:

Bostonerimus1 said:

Global bond funds are more diverse than UK Gilt funds so you might thing that's an advantage as you will be insulated from a UK Government tanking the Gilt markets.

...which takes me back to my original question and dunstonh's reply https://forums.moneysavingexpert.com/discussion/comment/80467073#Comment_8046707.

I'm minded to split between a hedged corporate bond fund, a hedged global aggregate index fund and a gilt index fund (if I can find a reasonable time to sell Capital Gearing Trust which probably no longer meets my needs).

Have you surveyed the available multi-asset funds to see if there is a lower risk option with a similar asset allocation to that which you are considering? This might make things a bit simpler. ~20% in equities actually reduces volatility and increases risk adjusted return if considering the standalone bucket within your portfolio.

No need that I can see. I am 70% equities/30% fixed interest so this is not a case of needing 20% equities on the efficient frontier. I can easily re-jig my equities when I bring in those currently held within CGT. I am happy with the corporate bond fund for a bit of fizz (Man GLG Sterling Corporate, though it's hard to imagine it carrying on serving me as well as it has been - and I note your point that increased credit spreads could affect riskier bonds), and the mix of cheap global aggregate and UK gilt funds seems sensible. It is clear to me that trying to time fixed interest markets is outside my skillset - I am no masonic!

I've always thought trying to time markets is a mug's game, but the volatility of stuff that shouldn't really be volatile  has got me thinking...

As my late mother-in-law would say: "oh dear".