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 small caps continued their positive momentum with a good start to the year, driven by better economic indicators, which are at multi-year highs, prompting economists to upgrade their growth forecasts. It appears that this is also now translating into profit growth with earnings expectations finally seeing positive revisions. This is important for the region which has seen profits stagnate following the global financial crisis. While valuations do not look obviously attractive, if profits recover anywhere near previous levels, European equities can still make good progress.

    The portfolio’s return was above the benchmark return, with broad based strength across the portfolio. Of note was the Italian industrial, Interpump, which benefitted from some broker upgrades and was tipped to benefit from any growth in US infrastructure. Strorebrand, the Norwegian life insurance business, performed similarly well, benefitting from rising Scandinavian bond yields. This also helped our other financials, Sparebank, the regional Norwegian bank and Ringkjobing Landbobank the regional Danish bank, contribute well during the month.

    Our main negative contributor came from CTT, the Portuguese post office, whose shares fell strongly following a weak quarterly update, highlighting a more challenging market in their traditional mail business with volumes falling more than expected. We hold the stock because we believe that the exposure to growing parcel deliveries and financial services will offset the decline of the traditional mail business, whilst we also receive a dividend yield of 9%.

    The outlook for European Smaller companies looks attractive given the improving economic activity in the region. Additionally the prospect of deflation appears to be diminishing which is encouraging investors to reassess their exposure to ‘bond proxies’ which are valued excessively, and look towards stocks which can benefit from improving growth and bond yields, where valuations are far more attractive. We welcome this return to fundamentals.

    As at 31 January 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 £353 million (as at 31.11.2016)
    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

    1094.25p1.75p

    21 Feburary 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.

Top