Mundy avoids dollar and retains 'insurance' on macro headwinds

Investec's Alastair Mundy has warned investors not to be reliant on dollar or sterling ‘safe havens' as the US and UK economies face a tough time reining in their burgeoning deficits.

Mundy, the manager of the group’s £1.57bn Cautious Managed and £344m UK Special Situations funds, says he has no exposure to the dollar in his Cautious portfolio but continues to hold a number of other ‘insurance policies’, such as gold shares and index-linked bonds, to help protect against macro headwinds. While investors have made a strong move into treasuries and gilts during the recent eurozone crisis, Mundy urges caution on the perceived ‘healthier economies’. “I am not sure jumping into the US or UK economy gets you away from many of the problems you are leaving when you sell th...