M&G raises gearing for shift in focus

M&G Equity Trust is increasing its gearing and implementing a barbell investment approach between corporate bonds and growth stocks. The £270m split cap, managed by Richard Hughes, has had its performance hampered by exposure to high yielding equities which have reduced its capital growth. The introduction of £60m of gearing, to be invested in a mix of sub-investment and investment grade UK corporate bonds, will enable the equity portfolio to move down the yield curve. Currently 55% of the portfolio consists of FTSE 100 stocks. Exposure to technology, media, telecom, drug and oil compan...