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Bonds - UK bias

A UK bias on equities e.g. VL100 has put a drag on returns.  Is the same true of bonds?  Is UK bias a potential performance issue?

Comments

  • dunstonh
    dunstonh Posts: 121,282 Forumite
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    Pipthecat said:
    A UK bias on equities e.g. VL100 has put a drag on returns.  Is the same true of bonds?  Is UK bias a potential performance issue?
    Yes, it is a potential issue.

    Indeed, UK Gilt funds fell by more than most (all) others between Nov 2021 and October 2023.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • masonic
    masonic Posts: 29,618 Forumite
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    Certainly a risk in the case of intermediate and long duration bond funds. For short duration and individual bonds, then it would be less of a concern and most likely UK interest rates would be most relevant to a UK investor.
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