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Mundy raises Investec gold exposure

Alastair Mundy small

Investec fund manager Alastair Mundy has increased exposure to gold shares in the £2.2bn cautious managed fund despite recent poor performance.

Mundy now holds 7.7 per cent of gold shares in the fund, up from 5.5 per cent at the end of April. He says: “Our gold shares have been horribly weak and have shown little correlation with the gold price. That has disappointed investors who are holding them as a hedge against something nasty happening.

“I am more relaxed as I think of gold as an imperfect hedge and I only need the gold shares to work if a big catastrophe happens. I am using gold shares as a useful insurance policy if the gold price goes up an extraordinary amount.”

Chelsea Financial Services managing director Darius McDermott says the move makes sense.

He says: “I do not feel gold equities would provide immunity if there is a big macroeconomic event and equities collapse but they are very cheap, which means there is greater scope for them to rise rather than fall dramatically.”


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