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Newcomers Quick Question on Bonds

Gilts, bonds, and interest-bearing shares
Waspfan
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Re: Newcomers Quick Question on Bonds

#506153

Postby Waspfan » June 9th, 2022, 7:13 pm

Just to add another option
I currently have 5% of my SIPP portfolio in Capital Gearing Trust
I estimate around 16% is already in bonds via my multi asset funds
Maybe instead of me investing in any more bonds with my £8,000 spare cash held in my SIPP portfolio, I should invest in one of the Ruffer Wealth funds?

The wealth funds seem to me to be a good way of balancing volatility, compared to bonds.

Am I right in thinking the wealth protection funds, behave in a similar manner stability wise?

Thanks once again guys

Urbandreamer
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Re: Newcomers Quick Question on Bonds

#506205

Postby Urbandreamer » June 10th, 2022, 7:03 am

Waspfan wrote:The wealth funds seem to me to be a good way of balancing volatility, compared to bonds.

Am I right in thinking the wealth protection funds, behave in a similar manner stability wise?

Thanks once again guys


They sort of try to, but they are all different. I mentioned that Ruffer had held Bitcoin. That would put some people off as they regard it as a very speculative asset. Elsewhere the returns from inception of Capital Gearing were questioned. The clue is in the name. At the start they were VERY risk on, taking out large loans to invest in growing businesses. I haven't bothered to research details of the others, but would be surprised if they were carbon copies.

If you compare the charts, Ruffer had a better Covid than it's competitors. Does that mean that it will weather the next storm as well or better than the others, I have my doubts, even though I'm investing in Ruffer. The relative performance is almost certainly due to luck.

At the end of the day can you and do you want to try to do the work that they do? Most have people working full time researching assets and watching events. It is however well worth reading their thoughts/predictions of the way the world is turning. Most seem to be trying to find good alternatives to fill the role that they use to buy bonds for, though they still have bonds.

Here is a link to Ruffer's most recent thoughts. They often have things to say.
https://www.ruffer.co.uk/en/thinking/ar ... green-line
And a choice of their postings
https://www.ruffer.co.uk/en/thinking/ar ... green-line
I'd ignore the sales pitch though, the point is that they are thinking about such things.
Capital Gearing likewise talk to the public.
ie
https://www.youtube.com/watch?v=TCtrCDsNePg
and there is their recent Chairmans statement in their annual report.
https://www.capitalgearingtrust.com/sit ... _Final.pdf
As our Investment Manager put it in a recent article
“prospective returns look lousy for practically everything”.


Both seem fairly keen on index linked gilts, but question if they are quite fit for purpose. It's simply difficult to find better alternatives.

Waspfan
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Re: Newcomers Quick Question on Bonds

#506234

Postby Waspfan » June 10th, 2022, 9:32 am

Thanks Urbandreamer.

I will certainly look at the links you sent, and to be honest I had similar thoughts regarding the above.

The costs are pretty high too.

Thanks


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