Investec to revamp Mundy's Capital Accumulator as high conviction fund

Investec is planning to switch Alastair Mundy and David Lynch's £100m Capital Accumulator fund from a zero dividend fund into a high conviction stock-picking portfolio, Investment Week understands.

The redesigned fund is likely to use cash, futures and derivatives in a bid to deliver market-beating growth with lower volatility and a focus on UK equities. The firm has suggested it will be increasingly difficult to maintain ‘equity-like’ returns with lower volatility by investing in zeros. It told clients the fund has already significantly evolved, but requires further changes to offer investors “a better alternative”. “We do not want to get into a position where the no income requirement is at risk of wagging the investment dog,” the group said in a presentation. Zero dividend...