JOHCM's Savvides blames Brexit for big banks' drag on £1bn UK Dynamic fund

Poor performance from Barclays and Lloyds last month

Alex Savvides, co-manager of the £1.1bn JOHCM UK Dynamic fund, has said Barclays and Lloyds Banking Group are suffering from the potential negative effects of a hard Brexit, with both banks dragging on the fund's performance in August.

Savvides, who developed the fund and has run it for the past decade, attributed part of the fund's underperformance from stock selection to high conviction holdings Barclays and Lloyds (a top ten holding at 3.8% of the fund), which collectively detracted 30bps from returns. The manager said the response by shareholders to the UK banks' interim results in early August was "extremely underwhelming", describing the poor performance as "both odd and unreflective of the underlying reality". Lloyds, BP, Glaxo: Which were the top ten most bought companies in H1 2018? "Interim results for ...