News & Insights

It’s time to look at long-dated bonds

By Gary Reynolds CFA

19 Aug 2025

Investment

Once a staunch equity advocate, Courtiers Chief Investment Officer, Gary Reynolds, now considers the role of gilts in long-term portfolios as a benefit. In his research note, he draws on over 125 years of data, comparing equity and gilt real returns since 1899 to 2023 and explaining his thinking across charts, investment strategy and risk psychology.

Gary identifies four key drivers of gilt yields: short-term interest rates, expected inflation, term premium, and diversification. These drivers show how gilt pricing is related to the Bank of England’s base rate, inflation and quantitative easing, with term premiums reflecting the risk of holding longer maturities. Still, gilts are effective diversifiers, especially when equity correlations are positive.

Ultimately, a balanced, historically informed approach to fixed income investing is needed. Does Gary think that gilts are the product to provide this? Read the full research note and find out.

Gary Reynolds CFA Chief Investment Officer

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Issued by Courtiers Asset Management Limited, CAM0725104. Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Tel: 01491 578368.