Inflation concerns see managers up index-linked gilt weightings

Cautious managed heavyweights Mundy and Burvill hold 14.7% and 12% respectively

Cautious Managed heavyweights Alastair Mundy and Chris Burvill have built up weightings in index-linked gilts on concerns the UK faces a strong inflation spike over the medium term. While index-linked gilts have performed poorly compared to conventional Government debt in recent months, the managers expect efforts such as quantitative easing combined with a weak currency to add to inflationary pressures going into 2010. Mundy's £1bn Investec Cautious Managed fund has 14.7% invested in index-linked gilts, while the portfolio contains 11.1% in another inflation hedge, gold shares. The m...