Pattullo moves to gilts to protect against 'deflationary shock'

The manager (pictured) of the £1.1bn bond fund said he is increasingly concerned about deflation as a result of the emerging markets slowdown, and has bought back into UK government bonds in case there is further fall-out from the EM crisis. He said a slowdown in emerging market economies could release a “deflationary pulse” which spreads to developed markets. “We are worried about a potential deflationary shock to world growth. In that environment, you have got more duration, which is why we have added to the asset class,” Pattullo said. Pattullo and co-manager Jenna Barnard have ...