Byrne blames financials for poor returns

Manager sees financials as reason for Equity Income Unconstrained poor performance

Standard Life Investments' Dominic Byrne is another in a long line of managers blaming financial stocks for his fund's chronic underperformance. SLI UK Equity Income Unconstrained has run an overweight to financials including banks, which make up almost a quarter of the portfolio. The manager held these stocks in the belief valuations were attractive relative to the sector's future prospects. "However, capital requirements in financials have risen sharply in the recent past as the economic outlook has deteriorated," he said. This has impacted holdings such as RBS, while the effectiv...