Old Mutual Gilt comment - Sep 02 - Fund Manager Comment25 Oct 2002
Inflation fears and further interest rate hikes remain the order of the day. While the bond market seems prepared to weather the spike in inflation expected later in the year, the fund manager's feel that bondholders are not adequately rewarded for the risks ahead. As a result, the Gilt Fund has a low modified duration relative to the All Bond index.
Old Mutual Gilt comment - Jun 02 - Fund Manager Comment05 Aug 2002
Inflation fears and further interest rate hikes remain the order of the day. While the bond market seems prepared to weather the spike in inflation expected later in the year, the fund manager's feel that bondholders are not adequately rewarded for the risks ahead. As a result, the Gilt Fund has a low modified duration relative to the All Bond index.
Old Mutual Gilt comment - March 02 - Fund Manager Comment15 May 2002
Inflation figures released during the quarter have intensified fears of higher inflation this year and next. The PPI figures released in February were significantly higher than market consensus, while the housing component in the CPIX figures shows a worrying trend. An expansionary budget adds fuel to these inflation worries. The Gilt Fund has been positioned with a low modified duration during the quarter, which has benefited its performance. Going forward, the fund will maintain a defensive position while inflation remains a concern.