SLI's Moore sells UK pharmas on earnings downgrade fears

Standard Life Investments' Thomas Moore, manager of the £105m UK Equity Income Unconstrained fund, has sold out of UK pharmaceuticals amid fears the sector faces further earnings downgrades this year.

Moore (pictured) has been selling his stake in GlaxoSmithKline since last summer and now has a zero weighting in the pharma space on expectations of a negative outlook for these firms. “We have sold out of the sector as we take the view the total return prospects are very poor. There is a consensus view in the market that the sector will continue to do well, but if you look at the sector’s earnings growth, the outlook is dire,” he said. “Earnings are forecast to be flat this year and fell 7.5% on average in 2012 after a number of downgrades as the market realised the companies are not...