Amey seeks better risk/reward in short-dated bonds and cash

PIMCO's Mike Amey is orientating his fund towards shorter-dated bonds and cash in the view they provide better reward for the risks associated with the UK economy.

The manager of the £610m Allianz PIMCO Gilt Yield fund has around 20% in cash, while 20%-25% of the fund is in three- to five-year gilts, Amey's favoured point in the gilt market. "PIMCO's central thesis is the UK is in for a multi-year period of weaker growth and that inflation dynamics are skewed towards the upside," he says. "Although we agree with the view Bank of England inflation will come down in the short term, where we disagree is that we see risks over the longer term. "Sterling is still vulnerable, the UK risks weaker growth than the rest of the world, it is still highly...