Gilt bull run still has legs - MAM's Gray

Owning gilts has made the single largest contribution to recent performance of the £761m Miton Special Situations fund, and there is more money to be made in the asset class, said manager Martin Gray.

He last bought gilts last year at a 4.5% yield, and also has some exposure to the asset class through funds including the Thames River Global Bond fund, run by Peter Geikie-Cobb. Gray has taken profits on gilts as prices have soared, and said he would not look to add more to the fund unless he sees a short-term uptick in yields. “Who would have believed we would see 30-year gilts below 3% and 10-year gilts below 2%? It was unimaginable. We were very bullish on gilts and we have made a lot of money. We have taken some profits but that does not mean there is a bubble or that you will no...