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GBP hedged treasury fund?

Posted: Sun Apr 22, 2018 6:38 am
by banker22
Hi all

I am in the UK and considering putting together a global PP. With gold and equities this is easy, but is there a gbp hedged long term treasury fund? I believe treasuries are the global safe haven whereas UK gilts are subject to more local issues (ie brexit).

Or should I just stick to gilts and ftse all share?

Thanks!

Re: GBP hedged treasury fund?

Posted: Thu Apr 26, 2018 12:46 pm
by jhogue
Why do you want a "global PP"? Do you live in the UK but spend a lot of time traveling outside the country?

Re: GBP hedged treasury fund?

Posted: Thu Apr 26, 2018 12:56 pm
by banker22
jhogue wrote:Why do you want a "global PP"? Do you live in the UK but spend a lot of time traveling outside the country?
My reasons are led by desiring a global equity portion. Here's why.

Equities

- UK is tiny part of the global economy (c5% by market cap?)
- FTSE All Share is skewed towards energy and financials - why would you consciously choose something that skews towards this?
- Global diversification has shown empirically to reduce drawdown severity and length

Bonds

- If I implement the above equity portion, then I believe US treasuries are largely considered the global safe haven asset.