David Jane, founder of TM Darwin, has invested in banks for the first time in his multi-asset fund since it launched last May.
Jane, former M&G head of equities, says banks are trading at attractive valuations and he has bought two last month in the £11m TM Darwin Multi-Asset fund.
He says: “The long-term refinancing operations have reassured me in terms of capitalisation of the banking sector and valuations are attractive where they are trading at half book value.”
Deutsche Bank is now a 2% position in the portfolio, which makes it a top ten holding, and Bank of America is a 1% position. (article continues below)
Jane says that both banks are global and are well diversified in terms of the services they offer.
He adds: “Deutsche Bank will rebound if Europe quietens down, as it has a large presence there. The US is growing strongly and that will support Bank of America.”