Alliance Trust backs eurozone recovery with Spanish bank play

Alliance Trust has snapped up a £35m stake in European equities, backing Spanish banks and cash-rich eurozone corporates to re-rate significantly over the long term.

The group’s chief executive and manager of the trust, Katherine Garrett-Cox, has revamped the £2.5bn portfolio over the past quarter, placing greater emphasis on global equities. As part of the restructure, she has bought a £35m stake in European equities via the Alliance Trust European Equity fund in the view the continent offers a compelling value opportunity. Other prominent investors including Jupiter’s John Chatfeild-Roberts and Henderson’s Bill McQuaker have also been adding to European equities in recent months, believing European valuations are too cheap to ignore. Fiona Ma...