Mundy hikes Cautious Managed cash to record 20%

Investec's Alastair Mundy has raised the cash weighting in his £2.3bn Cautious Managed fund to over 20% as he struggles to find buying opportunities in equities or bonds.

The manager does not agree with the consensus view equities are the go-to asset class and said a combination of “cash and patience” is serving him well in current markets. With over 20% in cash and short-dated debt, Mundy’s cash weighting is far in advance of the previous record highs seen within the portfolio: over its 20-year existence, the fund has never run cash at more than 12%-13%. “Cash is at 22%, the highest it has ever been on the fund. People are saying equities are cheap relative to bonds, but bonds are expensive. They seem to be comparing equities to a straw man,” he said....