GILTS OUTPERFORMED every other UK financial asset during 1998, according to a new study, although this pattern is unlikely to be repeated in 1999.
The annual CSFB equity/gilt study found that gilts delivered a return of 25 per cent last year. The return on equities was 14 per cent. Cash returned just 8 per cent. Returns for all asset classes were substantially above their long-term averages. Next year, however, returns are forecast to be far more modest. According to CSFB, equities will return just 8 per cent, and gilts between 4 and 5 per cent.
Jeremy Warner, page 2