The case for Active Gilts Management as Volatility

Investors are having to come to terms with the return of volatility. After several years of relatively stable conditions, the slide in equities at the end of last year and the subsequent recovery in the first quarter of 2019 were a stark reminder not to become complacent. David Zahn, Head of European Fixed Income, Franklin Templeton Fixed Income Group, looks at the implications for the gilts market and explains why he believes an active approach to gilts management makes sense now.

We believe investors should continue to expect a degree of volatility as markets unpack the uncertainty surrounding Brexit, global trade spats and pessimistic economic outlooks in certain regions of the world.