GBP hedged treasury fund?

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banker22
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GBP hedged treasury fund?

Post by banker22 » Sun Apr 22, 2018 6:38 am

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!
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jhogue
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Re: GBP hedged treasury fund?

Post by jhogue » Thu Apr 26, 2018 12:46 pm

Why do you want a "global PP"? Do you live in the UK but spend a lot of time traveling outside the country?
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
banker22
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Re: GBP hedged treasury fund?

Post by banker22 » Thu Apr 26, 2018 12:56 pm

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.
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