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

    Whilst European large caps ended October broadly flat, smaller companies had a more difficult month, returning some of the gains of the last couple of months during the period. In the face of limited change to global economic data it is politics that continues to dominate headlines and generate uncertainty not just in the US but also through the referendum on constitutional reform in Italy. The fund underperformed the wider market as a result of some stock specific issues.

    The main detractor was Swedish window manufacturer Inwido which fell -14.0% after issuing a disappointing trading statement. Their issues were mainly located in Sweden where the combination of a strong comparison period last year and a gradual slowdown resulted in some underwhelming growth numbers. We continue to believe in their strategy of small acquisitions where they can benefit from synergies in procurement and production.

    Irish ingredients supplier Glanbia had a weak end to the month and the share price fell -10.0%. Newsflow was very limited but there were some concerns that revenues would be volatile when they reported. This did not prove to be the case when Q3 results were released on November 2nd and the share price has since recovered.

    In terms of positives our financial holdings performed strongly during the month, German property lender Aareal bank rose +16.0%, Norwegian bank SpareBank +11.4% and Norwegian life insurer Storebrand +10.9% as bond yields rose as inflation expectations improved.

    During the month, we initiated a new position in German cable processor Komax after detailed initial research. The company matches our criteria of high quality businesses able to earn sustainably high returns and yet are trading on valuations whereby we feel there is an attractive margin of safety. We also exited our position in Swiss structured products supplier Leonteq. In the face of more attractive alternatives we no longer felt the shares merited a place in the portfolio.

    As at 31 October 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 £373.1 million (as at 31.10.2016)
    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

  • 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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