Of course, things could equally get a lot worse, but at least we’ve seen some positive headlines about financials in recent days. Bank shares have seen resurgence following positive earnings results for Bank of America and Morgan Stanley and, so then, it is fortunate timing for Invesco Perpetual to have announced the launch of its Global Financial Capital Fund.
The managers, Paul Causer, Paul Read and Nick Mustoe aim to profit from the structural reform and rehabilitation of the sector. What this actually means in practice, and indeed how long the process will take, remains to be seen. However, that’s three big names putting their reputations on the line, so the will to succeed is certainly there.
From speaking with fund pickers over the past few months, it seems to me that a sense of apathy has crept into the mindset of many when looking at financials funds.
Celebrated names
Jupiter’s financials range tends to be among the most celebrated but, as one big name IFA explained to me recently, the jury is still out as to whether they can repeat past success. Consider Philip Gibbs’ decision to stand down as manager of Financial Opportunities and International Financials funds where he previously made his name, while Guy de Blonay still has plenty to prove since rejoining the company from Henderson Global Investors.
The truth is that while financials still tend to dominate the evening headlines – and as I type, Sir Fred Goodwin is back as the nation’s number one villain – little has really changed for the good of banks, whose pre-credit crunch business models have been well and truly screwed up and kicked into row Z.
Let’s hope that Invesco’s entry brings some new ideas to the table and spices up the sector with the right level of increased competition that Jupiter and a handful of other financials managers have so needed for a long time.
