Woolnough slashes duration on M&G Optimal Income

Woolnough, who has sold government bond futures to instigate the move, said duration has fallen from five years at the end of 2010, and is well below a neutral position of 5.4 years. Woolnough is expecting the UK economy to remain weak in 2011, with a stagnant housing market, high unemployment and fiscal austerity weighing on growth. As such, he expects the Bank of England will tolerate high inflation and keep rates accommodative in order to prevent further economic weakness. Woolnough has also added index-linked gilts to the top performing fund, taking the position to 6.3% of the ...