Which European sector is LGIM's Launder reconsidering?

Sector seen recent underperformance

Gavin Launder, head of European equities at Legal & General Investment Management (LGIM), is considering moving back into European banks, while he has also bought a position in airlines for the first time in two years.

Launder, who manages the £155m L&G European Trust, said the portfolio's lack of exposure to banks had helped him in the fund so far this year. European banks have taken longest to recover from the global financial crisis compared to the US and UK and Italian banks have been particularly hit in recent months during the country's elections. The fund currently has 8.2% allocated to financials but zero exposure to banks, after exiting the last banking position in Italian bank Unicredit earlier this year.  Launder's fund has returned 2.2% over the last six months to 23 July, according to F...