Salient to Investors:
Scottish money managers, including Aberdeen Asset Mgmt and Scottish Widows Investment Partnership, are investing in US regional banks.
James Kinghorn at Scottish Widows Investment said regional banks are more leveraged to benefit from an improving economy than the larger banks, better relative to European banks, and attractively valued. Kinghorn said the US economy has much more scope to surprise positively than many other regions.
Paul Atkinson at Aberdeen Asset Mgmt said regional banks have the ability to surprise and move forward in terms of earnings – if the market does run next year, you will need to be in financials. Atkinson favors consumer-related stocks, which are able to benefit from higher spending Asian consumers, and energy services companies. Aberdeen prefers building materials suppliers.