McCarron goes for peripherals

Tim McCarron, manager of the Fidelity European fund, is retaining his exposure to the “peripheral” countries in Europe. His key overweight areas continue to be Greece, Spain and Ireland. He also likes some of the emerging European economies, believing their low levels of borrowing, high government debt and low per capita GDP gives them the capacity for growth. He says that the strong euro is going to feature more and more in company announcements, but it is mitigated to some extent by the fact that European, and particularly German companies, are used to dealing with a strong currency.