Kooyman drops UK banks for insurers

Sanlam's Kokkie Kooyman has completely sold out of UK banks in favour of UK insurers, and has cut positions in European and US banks in his Global Financial fund.

The manager of the £121m fund is concerned developed market banks could face significant losses in the face of heavy-handed government policy and stricter regulation. He sold Barclays, his final UK banking stock, last month and now has no exposure to the sector.  “Barclays would have looked attractive if there were not several capital risks. It could split into two banks, tax rates could increase, and it will likely be forced by the government to hold more capital.” Kooyman believes all UK banks will be affected by the weak state of the economy for the remainder of the year. “...