The Ashburton European equity fund is targeting growth plays in developed markets and companies that are in a position to benefit from rising inflation.

Veronika Pechlaner, an investment manager on the 96.3 million euros ($130.3 million) fund, said the portfolio is increasingly focused towards markets such as the United States and Germany, and is invested in sectors which stand to benefit from capital expenditure and pricing power.

"With pockets of recovery appearing in selective industries in developed markets, we are positioned to gain exposure to a 'Recovering West', which currently is geared towards U.S. trucks, logistics and a German consumer," she said.

She favors world number two truckmaker Volvo and German carmaker Daimler, which also sells trucks, as U.S. demand for them has increased and their 2011 outlooks are encouraging.

A recent Reuters poll has suggested U.S. gross domestic product will rise by 3.2 percent on an annualised basis in 2011, while German GDP is seen growing 2.5 percent this year. (Reuters)