Bond managers reveal Brexit fears but retain UK weightings

Markets could face "global shock"

Bonds managers have warned of the "global shock" markets will face if the UK votes in favour of leaving the European Union (EU) on 23 June, but said they are not cutting back their UK exposure as volatility is likely to be short-lived.

Paul Read (pictured), co-head of fixed income at Invesco Perpetual and co-manager of the £3.4bn Monthly Income Plus fund, said the fall-out from a 'leave' vote is likely to lead to "messy" consequences. "There is no question a vote to leave will have significant consequences for markets - and not just for UK markets but European and global. They are going to be risk-off. "There are huge uncertainties on how we are going to deal with it and I think it will get quite messy. Sterling will weaken, credit spreads will widen and equities are going to come off," he said. But the manager a...