Investec's Mundy moves to highest cash position for decade

Investec Asset Management's Alastair Mundy is running the highest cash weighting for a decade in his £1.8bn Investec Cautious Managed fund.

Mundy said many companies’ share prices now looked fully valued following a two-year bull market, and he has allowed cash to build up above 10% as there is a lack of opportunities in the market. “In general we think many stocks are trading at the top end of their range now,” he said. “Anyone buying a random basket of equities is asking a lot of those companies, and we cannot find sufficient cheap shares at present.” Cash and short-dated gilts are now worth 10.2% of the fund. Mundy said companies have enjoyed record low interest rates around the globe in the last few years, coup...