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

    Or contact your usual investment broker

  • 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

    European equities continued their positive start to the year as leading economic indicators remain in positive territory, earnings continue to be revised upwards and the majority of businesses reported improving profits. In addition during the month the outcome of the Dutch general election, the first of three perceived political hurdles for the region this year, did not result in the rise of anti EU sentiment many feared. The portfolio slightly lagged the strong benchmark in NAV terms but remains ahead over the course of the quarter.

    A number of holdings delivered double digit share price returns as a result of announcing earnings ahead of expectations. The main contributor was Swiss manufacturer Forbo, the market leader in linoleum flooring, whose share price rose 12.0% after full year results showed improving profitability, better than expected cash flow, increased dividend and the start of a buy-back programme. Elsewhere shares in Irish building merchant Grafton Group increased 14.0% as their results showed improved profits, impressive growth and management delivered an upbeat outlook.

    Detractors during the month included two financials, Norweigan regional bank Sparebank (-7.1%) and financials services company IFG (-7.8%). Sparebank has been a strong performer over the course of the last 12 months (+83.1%) and was hampered by some profit taking. Profits at IFG were hit by increased investments in the business as well as the continued impact of low interest rates. We continue to believe in the long term investment thesis and that management have taken the correct steps to accelerate growth. Overall, selective financials continue to represent an appealing investment proposition, offering the combination of unrecognised quality and attractive valuations.

    During the month we initiated a new position in Vidrala, the Spanish glass bottle manufacturer. This business benefits from strong market positions in both its home market as well as the UK & Ireland protected by high barriers to entry. They have a track record of consistent growth and solid cash generation and the opportunities to improve profitability.

    As at 31 March 2017

  • 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 £467.5 million (as at 31.03.2017)
    ISIN NL0000226090
    SEDOL 322566
    Currency Euros
    Ticker Symbol EAT.L
    Key dates
    Annual general meeting 21 May 2017
    Shareholders' and Investors' Briefing 10 May 2017                                      
    Year end 31 December
    Dividend payment date(s) January, May and August
    Ex-dividend date(s) January, May and August

     

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

     2Association of Investment Companies

  • Share price

    1195.00p-7.50p

    25 April 2017

  • Sam Cosh

    Sam Cosh

    Fund Manager

Past performance is not a guide to future results. The value of investments can go down as well as up.

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 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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