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

    April marked another positive month for European Equities, and in particular smaller companies. The combination of perceived reduced political risk following the first round of the French presidential election and a very strong earnings season reinforced investor’s confidence in the region. During the month the fund delivered performance significantly ahead of a strong benchmark.

    Our top two contributors for the month were both Swedish industrials highlighting the improving economic environment in the Nordic region. Engineering and equipment business Indutrade rose 20.8% as the company reported a strong quarter comprising good levels of organic growth, improved margins and earnings ahead of expectations. This marked a turnaround from the previous six months when the business had been experiencing temporary weakness in some regions and industries. Shares in wooden window manufacturer Inwido increased 15.1% as sales and profitability improved and order bookings for the following quarter were substantial. On the whole the reporting season for the first quarter of 2017 for European stocks delivered ahead of expectations which not only boosts share prices but also the attractiveness of the region.

    Detractors during the month primarily comprised of those that did not keep pace with the strong market rally. Our holding in German pharmaceutical manufacturer Gerresheimer fell 3.1% as the healthcare uncertainty in the US resulted in some caution from customers which alongside some timing issues resulted in weaker growth. Having spoken with the company we remain confident in the prospects for the business. Finnish sporting goods manufacturer Amer Sports fell 5.3% as although their results highlighted increased sales they disappointed in terms of profitability. We are undertaking a full review of the business to ensure the long term thesis remains on track.

    Whilst the rally in April suggests a number of investors consider that Europe has gone past peak levels of political risk we are cognisant that it still remains. The addition of a UK election adds an additional twist to the Article 50 negotiations whilst the German federal elections remain on the horizon. We believe that predicting the outcomes or investing on this basis is prone to error and instead focus on identifying high quality, attractively valued businesses that can deliver operational improvement regardless of the outside environment.

    As at 30 April 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 £414.6 million (as at 30.04.2017)
    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

  • 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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