Alliance Trust Asset Management has unveiled a high-conviction European Equity fund for former Scottish Widows veteran Fiona MacRae.
Launched last week, the concentrated long-only portfolio consists of between 25 to 35 stocks and is benchmarked against the FTSE All World Developed Europe ex-UK index.
MacRae joined Alliance Trust from boutique Kempen Capital Management in October 2008, after previously spending 19 years at Scottish Widows.
European Equity is the third Alliance Trust fund unveiled this year, following the launch of the UK Equity Income and North American Equity vehicles in February.
Alliance Trust business development managing director Edward Troughton says MacRae's investment approach is highly aligned to the house's traditional style.
"MacRae has tremendous experience exclusively running European equities, in excess of 22 years, but far more important for us was how she managed money," he says.
"We are very traditional long-only investors, whether retail or institutional, and we look to take long term positions in companies which are leaders in their sector.
"What the market tends to do is trade a lot and look too much at quarterly earnings. As a house, we try to take a much longer view. Fiona also believes in this philosophy."
Troughton says the group will also look to roll-out further products over the course of 2010, including a fixed interest product for the four fund managers recently acquired from Swip.
The former Swip bond team, led by former global head of fixed income Rod Davidson, will join Alliance Trust in the New Year.
"Certainly by the end of next year we would like to have all our core capabilities under one roof," Troughton says.
"At the moment we have UK Equity Income and North American Equity and we have just established European Equity, but in 12 months time I would expect to have global equity and a fixed income fund.
"Fixed income will be a very big plus for us. The Swip team is well known and well regarded and you can definitely expect a fund from us."
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