Investec's Mundy buys physical gold for first time after sell-off

Investec's Alastair Mundy has moved a significant portion of his £2.5bn Cautious Managed fund into gold bullion for the first time following savage price falls for the precious metal.

Mundy (pictured), who has been reducing his exposure to equities after a variety of indices hit record highs, said he has put 5% of his portfolio into physical gold in the last few weeks, after the precious metal fell in price by more than 25%. From a peak of $1,796 last October, gold fell to a low of $1,322 last month, before rebounding some way. It currently trades around $1,450. “We felt, with Japan announcing more stimulus, investors would get more bearish,” he said. “For us, gold is also a good diversifier for the fund as it is a hard currency replacement. “It is also in reaso...