Investec's Mundy: Banks and retail offer UK investors some solace

Uncertainty set to remain

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Alastair Mundy of Investec
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Alastair Mundy of Investec

Investec's Alastair Mundy is turning to the discounted opportunities in the UK banking and retail sectors as valuations remain low against the backdrop of Brexit.

The contrarian portfolio manager, who runs Investec's UK Special Situations and Temple Bar investment trust, is painfully aware how to face discomfort when going against the herd; the reward being the cheap stocks on offer. He said UK banks have "become something of a pariah sector" and despite significant changes and improvements in governance, they remain on "undemanding" valuations. Mundy (pictured) said: "New management, better balance sheets, improved regulation and the end of fines has led to them becoming profitable institutions. RBS and Barclays are currently amongst our large...

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