Investment fund management firm Invesco Perpetual has said that the Bank of England's policies for helping the country out of the recession are negatively affecting those with money in gilts .
Paul Read, co-head of fixed interest at the company, said that the Bank's attempt to carry out quantitative easing through the purchase of corporate bonds in gilts is affecting the yields of others' investments .
Mr Read expressed doubts that the Bank needs to be making investments in corporate bonds and said that yields would be higher if it was not carrying out quantitative easing was not happening.
However, Mr Read added: "The policy of quantitative easing is encouraging investors to take on more risk. Ultimately, it will be some time before the success of quantitative easing can be fully determined."
The Investment Management Association recently said that reforms announced in the annual Budget report have made UK funds more attractive to those looking to invest .
Quantitative easing affecting bond investments, says Invesco Perpetual
Quantitative easing affecting bond investments, says Invesco Perpetual
Fri, 22 May 2009
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