UBS's Tom Digenan undeterred by stricter banking regulations

UBS's Tom Digenan has been increasing his exposure to banks despite his view that the sector will be hit by stricter regulation on capital requirements.

The manager of the £589m US Equity fund says the longer term prospects for banks outweigh any short-term negative sentiment. “In financials, I think the political pushback is going to be pretty dramatic. The financial industry does not have a lot of political capital right now,” he says. “I think we are going to see some requirements on capital and I think the market reaction to that is negative, but when you look at it, depositors tend to flow to where the most capital is, so it is not going to be as negative as people think.” Digenan says he has focused on banks that have a stron...