UK bonds are 'best performing asset'

UK bonds have been shown to be the best performing asset for British investors over the last 12 months.

Figures compiled by Lloyds TSB have revealed this asset class saw returns of 13.5 per cent during the course of 2011, putting it comfortably ahead of other investment options.

The bank noted that concerns over the outlook for the global economy, and for the eurozone in particular, have contributed to the marked increase in returns from UK bonds.

Suren Thiru, economist at Lloyds TSB Private Banking, commented: "UK bonds provided the best returns in 2011, reflecting the flight to safe haven investments that has characterised the past 12 months. Gold, which is viewed as the ultimate safe haven investment, also performed well."

The news follows reports last week that gold prices diminished slightly on the back of weak employment data coming out of the US.

Values fell by 0.4 per cent to $1,652.86 on Thursday (January 19th) afternoon following a three-day run of gains in commodity trading for the precious metal.