Mundy sells out of index-linked gilts

Alastair Mundy, manager of the Investec Cautious Managed Fund, believes there is no longer any value ...

Alastair Mundy, manager of the Investec Cautious Managed Fund, believes there is no longer any value in index-linked gilts and has sold his entire holding in the asset class. Index-linked gilts were used largely to protect the portfolio against the threat of inflation being higher than expected. However, real yields have fallen significantly in recent months and these bonds no longer offer value, according to Mundy. The fund remains overweight equities, with a 60% allocation to stocks and a 35% allocation to bonds.