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Nest shuns 'overvalued' gilts

Nest shuns 'overvalued' gilts

The National Employment Savings Trust (Nest) has slashed its investment in gilts to only 2% of its portfolio, according to reports.

The Times reported that Nest is shunning conventional government bonds and other sovereign bonds in the face of the possibility of negative real returns from the asset class.

Until last year Nest allocated 10% of its holdings to gilts, but has shifted to instead invest in corporate bonds and index-linked sovereign bonds. Its default retirement fund has upped its exposure to equities from 40% to 50% of its portfolio since the autumn.

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