Phoenix is one of Britain’s biggest investment groups, with £260bn of assets under management.
Gilt yields have been volatile since last September’s mini-Budget, triggering investors to rethink their approach to Britain.
Yields, which move inversely to price, on 10-year UK government debt reached a low of 3.3pc in the wake of Jeremy Hunt’s March Budget. However, they have been rising steadily since then as concerns about inflation have mounted.
10-year yields hit a peak of 4.4pc last month and stood at 4.14pc by the close of trading on Friday.
Mr Eakins said Phoenix had started selling gilts “about 18 months ago” before Russia’s war in Ukraine, suggesting Threadneedle Street has been consistently behind the curve on inflation.
As well as tackling inflation, Mr Eakins said it was also important that Chancellor Jeremy Hunt continued to focus on getting UK debt on a “glide path” lower in order to minimise a ballooning interest bill.
While Phoenix has been dumping gilts, some investors have seen recent market turmoil has a good time to invest.
The Universities Superannuation Scheme (USS), which invests more than £90bn on behalf of UK academics, said it was an “opportune time” to invest in UK debt. It is redirecting some of its near £14bn portfolio of government bonds back into gilts.
Simon Pilcher, Chief Executive of USS Investment Management, which manages the fund, said: “Over the last few months UK gilts have clearly underperformed other major bond markets, in particular the US.
