Fiscal tightening prompts SVM manager to up gold exposure

SVM's managing director Colin McLean has boosted his funds' exposure to gold companies by about 2% this month, trimming European financials and basic resource stocks to finance the switch.

McLean says: "We expect fiscal tightening, more taxes and loose monetary conditions, which will make people look towards gold and other safe stores of value." He added to Centamin Egypt on brief weakness at around 160p before the £1.5bn company entered the All Share index this month. He has also increased his holding in Petropavlovsk as it narrowly missed FTSE 100 inclusion this month, as well as African Aura Mining. This, plus holdings in other miners including Randgold Resources, brings SVM's overall exposure to the sector to about 9%. McLean says he sold down European financials...