The managers of JPMorgan’s £280m European Fledgling investment trust have upped their gearing for the first time in two years.
The trust has 108% gearing, enabling its managers, Jim Campbell and Francesco Conte, to buy into more of the stock opportunities they see in the market.
In February 2007, they removed all gearing and held cash instead in the view that there were few attractive stocks in their investment universe.
They have also introduced more of a growth bias in the fund in the expectation that growth stocks will outperform in the next two to three years. Holdings include healthcare, information technology software, non-life insurers and pharmaceutical stocks.
Companies with global distribution networks are particularly attractive, the managers say. They are looking to invest in those European-based companies that benefit from being suppliers to infrastructure projects in emerging markets.