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

    August was a relatively quiet month, though European equities continued their recovery path following the shock of the Brexit vote, with first half results dominating newsflow. These results were the principal factor behind the portfolio return, which marginally lagged the benchmark return. Sterling remains volatile but in aggregate, the weakness over the month aids the reported returns.

    The biggest detractor from performance was Portuguese postal operator CTT whose shares declined -11.4%. This business has a wide and difficult to replicate, network across Portugal that should enable it to benefit from increased parcel delivery but also allow it to roll out differentiated financial services. The results disappointed partially on a timing issue and less registered mail alongside some higher costs. We are in the process of reviewing this position to evaluate the validity of the investment thesis.

    A number of our holdings reported positively during August. Italian industrial Interpump, which makes power adaptors for “vocational” trucks (for example cement mixers, refuse collectors) and ultra-high pressure pumps rose +10.5% on the back of good sales and margin improvement. Swiss flooring manufacturer Forbo also exhibited strong growth figures and increasing profits, rising +8.6%.

    Some of our holdings that were particularly badly hit as a result of Brexit vote to leave the European Union and the ensuing uncertainty with regard to Europe’s economic and political future have continued on their path to recovery. This includes Norwegian life insurer Storebrand increasing +12.8% and Spanish media company Atresmedia rallying +13.9%. This serves both to highlight recent market volatility and the fact that we are still early in the post-Brexit environment. Despite disappointing recent performance, we continue to focus on our philosophy and process, which we believe, will deliver good performance over the long term.

    As at 31 August 2016

  • 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 £362.7 million (as at 31.08.2016)
    ISIN NL0000226090
    SEDOL 322566
    Currency Euros
    Ticker Symbol EAT.L
    Key dates
    Annual general meeting 10 May 2016
    Shareholders' and Investors' Briefing 11 May 2016                                      
    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

    1062.50p-2.50p

    closed

  • 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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