Fidelity stars clash on banks

Fidelity's Income fund manager Michael Clark is at odds with Sanjeev Shah, manager of the group's £2.4bn Special Situations fund, on banks shares, urging investors to avoid the sector.

Clark, running the group's £416m MoneyBuilder Dividend fund, has been steering clear of banks in his fund on concerns over the ongoing eurozone crisis. While valuations have dropped near to record low levels, Clark said the sector is not yet investable for income funds. "I still have a very negative view on banks. I think it is too early to make serious investment in the broader European banking sector at the moment," he said. He conceded the case for buying in on valuation grounds is plausible, and he is holding one bank - HSBC - which he added to when shares fell below 500p. H...