Mundy protects against possible failure of 'financial experiment'

Investec's Alastair Mundy is continuing to hold Norwegian bonds and gold in his £1.56bn Cautious Managed fund to protect investors should the efforts to stabilise the financial system eventually fail.

He says the results of the current deleveraging and attempted reflation are unknown and calls it "one of the greatest financial experiments ever conducted". There are also "genuine risks the experiment may be unsuccessful", he adds. "If investors lose confidence in the major currencies, our assumption is that switching from the currency of one struggling economy or region - be it US dollar, euro, sterling or yen - into another may be akin to deckchair swapping on the Titanic," Mundy says. "If so, finding an economy with very different characteristics may appeal, and Norway is the s...