SEI sees value in the financial sector in investment-grade fixed income, where spreads are wide despite what the firm perceives as improving fundamentals in the industry.

The US-based wealth management and technology firm thinks stricter regulations and capital requirements will benefit bondholders.

Moreover, high yield debt managers at SEI have maintained allocations to bank loans and structured credit which they view as attractive areas despite a difficult second quarter, where market optimism began to falter in April and turned to panic in May.

SEI's outlook comes at a time when the popularity of the financial sector is being tested as banking giants Barclays and HSBC have been reprimanded by regulators on both sides of the Atlantic, after interbank interest rate rigging and anti-money laundering flaws respectively. Several global banking groups are reportedly being investigated by US and UK regulators for similar wrongdoings as Barclays, for which the UK bank received fines totalling £290 million ($455.3 million). According to unconfirmed media reports, HSBC could be fined up to $1 billion by the US authorities, as its anti-money laundering control failings are said to have facilitated funding for drug gangs, rogue states such as Iran and terrorists.

In general, SEI has a neutral view on equities versus bonds, motivated by the fact that the potential for big surprises, either good or bad, sit side by side. The global economy and the eurozone could face further headwinds, but likewise more central bank stimulus or a breaking of the financial logjam in the US could provide a welcome boost.

SEI believes that momentum trends keep favouring US stocks versus international, especially against Europe - a trend in place for more than a year. The wealth manager believes the (vicious) cycle of panic, government response, relief and more panic will continue in European markets.

In fixed income, the firm prefers US high yield debt and other corporate credits instead of treasuries and the sovereign debt of other countries. In the near term, worries about the economy could cause some widening in spreads versus treasuries, and SEI says it would view that as a buying opportunity.