Money managers split over Brexit's effect on government bond market

London

SOME of the world's biggest money managers risk cancelling each other out in the UK's government bond market as the potential fallout from leaving the European Union splits the investment community.

Pacific Investment Management Co (Pimco), with US$1.43 trillion in assets, sees the prospect of Britain voting to end EU membership in a June 23 referendum as positive for UK sovereign debt as it augurs lower interest rates for longer. Pioneer Investments, which oversees more than US$200 billion, says that it is inclined to sell if it felt that the "out" vote will win.