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

    While data continues to be supportive for the European economy in July, investor attention turned to second quarter company results for more evidence that this encouraging environment was filtering through to company profits. Following a strong full year and first quarter results season, the evidence so far from the second quarter is not quite as compelling, with companies, in aggregate delivering in line with expectations. Nonetheless our portfolio delivered a good return in July, outperforming our benchmark.

    Our top performers over the month were our Norwegian financials, the life insurer Storebrand and the regional bank Sparebank. The attractions of both these investments is that they have strong market positions, are well capitalised, and should deliver good long term growth. The headwinds of low bond yields, and regulation, which had distracted investors from these quality characteristics, are dissipating, and with relatively attractive valuations and the prospect of stronger capital returns, the stocks are now finding more favour.

    Other strong performers came from companies that delivered strong first half results. Of note was the German industrial Norma Group AG, who increased their full year sales guidance. Rational, a Garman manufacturer and Tomra, a Norwegian recycling solutions business also performed well following results.

    Our main negative contributors were Forbo, the Swiss flooring business, and Inwido, the Swedish window manufacturer, which both fell following their quarterly updates. While Inwido did indeed deliver a poor quarter, Forbo’s weakness appeared more to relate to a conservative outlook statement, as their operating progress thus far this year has been very encouraging. Nevertheless, we continue to believe in both holdings and have used the recent weakness to add to the positions.

    As at 31 July 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 £442.0 million (as at 31.07.2017)
    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

  • 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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