Chief investment officer at JP Morgan says ‘UK bonds should not fear Brexit’

Holders of UK’s government gilts or bonds need not fear the prospect of Britain voting to leave the EU as they stand to benefit from any economic woes that follow the vote, according to one of the world’s largest money managers.

“If a Brexit happened it would be very likely the Bank of England would ease policy again, either by cutting interest rates or more quantitative easing, gilts are very much a beneficiary of that,” Nicholas Gartside, London-based chief investment officer for fixed-income at JP Morgan Asset Management, said.

“You also have a scenario where you’ve got a lot more economic uncertainty. So, again, gilts are a beneficiary of that,” he said.