Neptune's Burnett adds peripheral banks ahead of stress tests

Neptune's Rob Burnett has been adding to peripheral European banks in anticipation of a share price bounce after this year's round of stress tests are completed.

Burnett, manager of the £641m Neptune European Opportunities fund, increased exposure to Italian and Spanish banks at the beginning of the year. Picks include Madrid-based Banco Popular, and Italian banks Mediobanca and Banco Popolare. The Italian banks in particular have had mixed results over the last year as concerns about the country’s growth rate weigh on the sector. Europe’s main banks face a series of stress tests later this year, overseen by the European Central Bank and other European Union regulators, which has caused some investors to shy away from them. However, Burnett...