Lyttleton to up bank exposure in UK Dynamic

The manager holds 13% in banks in UK Dynamic and, while he remains cautious on the sector, said next year could be the time to increase the weighting. “Recently, valuations have come back to interesting levels. We still have concerns relating to funding, sovereign risk and regulations in the sector, but in the first half of next year, if there is not too much by way of regulatory issues, we will be more optimistic.” HSBC is currently a top 10 holding at 6%, while Lloyds remains the fund’s only overweight in the banking sector. Lyttleton admitted the position has detracted from perform...