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 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

    Despite a strong slate of economic indicators across Europe and relatively good second quarter earnings results, increasing geopolitical concerns arising from the North Korean peninsula and an appreciating euro pressured the European small cap market down in August.  Investor sentiment was also weighed down by what appeared to be the slow pace of Brexit negotiations, which have been cause for concerns for many UK broadrooms.

    The fund followed the downward trend of the market, underperforming it. The fund, however, started the month on a strong note and it wasn’t until the last two weeks of August that it started to underperform its benchmark. Stock selection was the primary detractor of the month’s relative underperformance. Despite the negative returns in August, many of the fund’s holdings fared well. Amongst these were Norwegian regional bank Sparebank. Investors have been attracted to the well-capitalised bank’s strong market position. We believe that the financial institution is well positioned to continue to deliver good long-term growth. Danish natural food ingredients company CHR Hansen was also a good performer. The company has leading technology within sectors such as Food Cultures and Enzymes and is at the forefront of probiotic research. Detracting and contributing to the month’s relative underperformance were Lenzing, an Austrian-based textile manufacturer. The stock price fell despite producing 2Q17 results that were above market expectations. While the market was expecting capacity expansions in the industry, this may have prompted some investors to consider that we are close to a cyclical peak and decided to sell based on the short term outlook. Guidance remains for 2017 results to be considerably better than 2016 and earnings forecasts haven’t moved materially, so the valuation has become more attractive. Irish dairy and nutrition products manufacturer Glanbia was also a weak performer. The stock price fell on the back of a weaker US dollar given the fact that Glanbia generates 70 to 75% of turnover State side. We exited the position as we believe that the environment for nutritional products is becoming increasingly competitive which may put the group’s profit profile in jeopardy.

    Trading activity was limited during the month. In addition to existing Glanbia, we added to Swedish-based climate control products manufacturer Dometic Group, facility management provider Coor Service Management, also of Sweden, and Lenzing.

    As at 31 August 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 £437.9 million (as at 31.08.2017)
    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, 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

    1,280.00p +0.00p

      

  • 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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