Kames' McEntegart boosts bank exposure ahead of rate hikes

Backed Nationwide bonds

Vincent McEntegart, manager of the £315m Diversified Monthly Income fund at Kames Capital, has said banks remains one of his biggest trades in the portfolio as the sector is set to benefit from rising interest rates.

Speaking to Investment Week, multi-asset manager McEntegart (pictured) said many investors had been bearish towards the sector in an environment of low interest rates, bank fines and increased regulation. However, changes within these factors mean banks will continue to perform well in 2017 after a turnaround in performance in 2016. Macroeconomic uncertainty in the first half of 2016 led the Federal Reserve to delay widely-expected rate hikes, which increased volatility in the banking sector. However, post-Brexit, despite initial falls of 20% in the days after the referendum, the sect...