F & C Investments

European Assets Trust

  • Investing with real conviction

  • How to Invest

    Open an F&C Savings Plan

    Call: 0800 136 420

    Invest online now

    The value of your investments can go down as well as up, and you may not get back what you originally invested.

  • Key Information Document (KID)

    ISIN Trust name English Dutch
    NL0000226090 European Assets Trust NV KID KID

    Key facts

    Europe is home to a wide range of small and medium sized companies - a diverse opportunity set that includes fast growing world-leaders, innovative niche specialists and high quality sustainable businesses. The portfolio contains what the manager believes to be the very best investment opportunities from across the region with a clear emphasis on well-managed, strong businesses whose real potential isn’t yet reflected in their share price. As well as the superior growth potential inherent in small and medium sized companies, the trust has historically offered an attractive income of 6%1 per annum.

    Highlights

    • Access an often overlooked asset class
    • Small and mid-cap focus
    • High conviction portfolio of 40-60 investment ideas

    Suitability for retail distribution

    The Company’s shares are excluded from the FCA's restrictions which apply to non-mainstream products as the Company's portfolio is wholly or predominantly made up of shares, debentures or government and public securities which are not themselves issued by other investment funds. The Company conducts its affairs so that its shares can be recommended by Financial Advisers to ordinary retail investors in accordance with the Financial Conduct Authority's rules relating to non-mainstream investment products and intends to continue to do so.

  • Fund manager commentary

    The turbulent start to 2018 for equity markets continued in March, as the potential for a global trade war rose significantly. Tariffs on steel and aluminium were announced by the US, followed by further restrictions on Chinese imports. This resulted in retaliation from those impacted, and increased uncertainty for a number of companies who source, manufacturer or distribute globally.

    In macroeconomic terms, Europe’s leading indicators have pulled back from their peaks but remain firmly in positive territory, and the unemployment rate continues to decline. The fund underperformed the market due to stock-specific issues.

    Swiss flooring company Forbo detracted from performance, falling -15.6%. Its results included a conservative outlook for 2018, which disappointed the market, and there is a time lag in adapting prices to compensate for rising raw material prices.

    German business equipment supplier Takkt gave back all of the gains it has made so far this year, falling -14.6% as its guidance also suggested a slowdown in growth and potential margin pressure. Swedish recreational vehicle appliance manufacturer Dometic fell -13.3% on limited news flow, having performed strongly into the end of 2017.

    In terms of positive contributors, recycling machine manufacturer Tomra rose 15.7% as the UK confirmed it would be introducing a bottle deposit scheme. It should be noted that while Tomra has attended a meeting with the UK government, it is too early to comment on the commercial opportunity. Should it materialise, this would represent a very large new market for the company. Spanish swimming pool equipment manufacturer Fluidra rose 15.1% as the final approval of its merger with US player Zodiac was granted and it released further details of the combined entity.

    We initiated two new positions during the month in Sligro and Tecan Group. Sligro is a leading food services business in the Netherlands that has recently disposed of its retail business, leaving the group as a market leader with potential to expand into neighbouring geographies. Tecan is a laboratory automation manufacturer with market-leading positions and strong partnership relations in a fast-growing industry.

    As at 31 March 2018

  • Fund facts
    Investment manager F&C Investment Business Limited
    Benchmark Euromoney Smaller European Companies (ex-UK) Index
    AIC2 sector European Smaller Companies
    Launch date 1972
    Total assets £439.3 million (as at 31.03.2018)
    ISIN NL0000226090
    SEDOL 322566
    Currency Euros
    Ticker Symbol EAT.L
    Key dates
    Annual general meeting May
    Shareholders' and Investors' Briefing May                                      
    Year end 31 December
    Dividend payment date(s) January, April, July and October
    Ex-dividend date(s) January, April, July and October

     

    1Calculated with reference to December 31 net asset value with dividend payments made in January, April, July and October of each year.

     2Association of Investment Companies

  • Share price

    1,224.20p +4.20p

      

  • Sam Cosh

    Sam Cosh

    Fund Manager

The shares of the Company are listed on the London Stock Exchange. Information in this section of the website concerning the Company is directed solely at persons who are located in the UK. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Potential investors must read our full terms and conditions, and the relevant Key Information Documents (KID), before proceeding further with any investment product referred to on this website. The information on this website may not be suitable for everyone, and retail investors unsure whether an investment product referenced on this website will meet their individual needs should seek advice before proceeding further with such product.

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