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

    As politics continued to dominate newsflow across Europe, markets once again delivered positive performance in the region. The result of the French election early in the month abated fears of the country taking a more Eurosceptic approach and once again, economic data was supportive across the continent. Consumer confidence reached a post financial crisis high whilst the unemployment rate continues to decline. The net asset value was positive in absolute terms but behind a strong benchmark over the course of the month. A weakening of sterling ahead of an increasingly uncertain general election helped this.

    Two of our holdings in the information technology space were among the top performers. French software and hardware equipment supplier Lectra rose 22.7% as their first quarter results delivered strong sales growth as well as a healthy order intake and profitability improvement, all ahead of expectations. Shares in German online ticket provider CTS Eventim increased 16.3% over the course of the month as their first quarter results showed growth and profitability improvements. Elsewhere Portuguese postal operator CTT’s shares rose 16.9% as results were ahead of expectations and the shares are attractively valued after a difficult period in the last year.

    The main detractor of note was Irish agronomist Origin Enterprises whose share price fell 6.8% during May after posting double-digit returns in April. Results were broadly in line with published expectations but in a favourable environment for farmers and with easier comparisons from the prior year, they perhaps should have been able to demonstrate a greater improvement. Operationally the business remains strong in both the UK and Ireland whilst continuing to make progress in Eastern Europe.

    We made limited changes to the portfolio over of the course of the month. We continue to focus our research into identifying high quality companies with attractive share prices. The improving economic outlook for the European region and continued elevated earnings expectations bodes well for business’ operational performance. These developments should disproportionally benefit smaller companies, as they are the most exposed to the domestic economy.

    As at 31 May 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 £433.2 million (as at 31.05.2017)
    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

    1307.50p-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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