Murphy predicts fall in domestics

Old Mutual's UK fund manager Simon Murphy is cautious on the outlook for domestic equities, predicti...

Old Mutual's UK fund manager Simon Murphy is cautious on the outlook for domestic equities, predicting a fall in profits growth before the year end. Murphy, who joined from M&G and took on the revamped UK Select Equity fund earlier this year, said the macroeconomic outlook has deteriorated as the real economy began to feel the fallout from the credit crunch. After five years of rising corporate profits, he suggested that is coming to an end. With this in mind, Murphy has looked to keep clear of the financial sectors in general, although there are individual stocks he has favoured, and...