Causer and Read plan to hike bank equity exposure

Invesco Perpetual's Paul Causer and Paul Read have been boosting exposure to equities, taking the view the strong rally in financial bonds will cool in 2013.

The duo currently have 13.5% in equities within their £43m Global Financial Capital fund, and are planning to up the position still further in future. Causer, co-head of fixed income at Invesco Perpetual, said the US economy is showing signs it may achieve a sustained recovery, in turn making bank shares look more attractive. He added the US banking sector is further along the path of balance sheet repair than institutions elsewhere in the world. "Although we continue to see most of the value in the bond side of the financials universe at this point, we have increased our holdings ...