Fidelity's Shah cuts RBS stake

Fidelity's Sanjeev Shah has reduced his holding in part-nationalised lender Royal Bank of Scotland (RBS) following a tough year for financials in 2011.

The manager of Fidelity's £2.2bn fund - previously run by renowned investor Anthony Bolton - has favoured unloved banks RBS and Lloyds since the financial crisis, with mixed results. However, Shah said he trimmed down his holding in the former during 2011 because it continues to face extensive risks. From a position of around 2.5% last April, Shah said he now had under 1% of the fund in RBS. "It screens as attractively as Lloyds but it has a higher risk profile," Shah said. Shah said the bank may have to wind up its US operations over time, as well as wind down its investment ba...