ANALYSIS: The European funds to back if bank rally continues

European shares have rallied strongly on the outcome of the first round of France’s presidential election, but which funds stand to do best from the change in sentiment towards the region?

ANALYSIS: The European funds to back if bank rally continues

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Other funds the data suggests have a high general financials weighting include the £2.2bn Invesco Perpetual European Equity fund, with a 30.5% position in the sector at end-March.

Its top-ten holdings ING, Spanish group Caixabank (+4.46%) and Unicredit have gained since the vote.

THe £231m Schroder European Alpha Income also looked set to fare well from any broad financials recovery, thanks to its 34.7% weighting in the sector as reported by FE Analytics. The Schroder European Alpha Plus fund also ranks high in the financials-weightings league.

The £91m Liontrust European Enhanced Income fund run by Olly Russ is also overweight financials, though his top ten includes relatively more stable Nordic banks.

For those investors who remain sceptical about the prospects for the eurozone and Europe’s banking sector, there are funds reporting low weightings.

THe £591m Man GLG Continental European Growth Fund reported being 10.6% underweight banks at end-March.

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