Montanaro European Smaller Companies Trust Plc

European Equities

New for 2020. Backs quality companies with growth prospects, with great success  

Montanaro European Smaller Companies lifted the title of Best European Trust in Money Observer’s 2019 investment trust awards, thanks to its impressive performance profile. It is a newcomer to our Rated Funds for 2020.

The Montanaro fund has consistently hugely outperformed its benchmark, the MSCI Europe SmallCap (ex UK) index, and it is the best- performing European investment trust over one, three and five years by far. Despite being too small to interest most wealth managers – it has assets of just £200 million – it should be on the radar of private investors.

Montanaro was established in 1991 to research and invest in quoted small and medium-sized companies in Europe and the UK, and the firm now has funds under management of £2.2 billion. George Cooke, lead manager, works alongside Charles Montanaro, the group’s founder. Their approach is to seek quality growth. A qualitative analysis stage involves a thorough assessment of the quality of a business, its growth prospects and financial health. Quality is assessed using 14 criteria within five broad ‘buckets’: growth, profitability, leverage, cash and volatility.

At the end of 2019 the portfolio consisted of 55 holdings, with the top 10 accounting for less than a third of assets. Shares can be bought at a discount, typically a single-digit discount over the past year.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Montanaro European Smaller Companies Trust Plc
Manager
Montanaro Asset Management Limited
Type
Closed Ended Investment Company
ISIN
GB0004543517
Sector
European Smaller Companies
Launched
01/01/1981
OCF
1.18 %
Risk Rating
4
3 Year Sharpe
0.92
3 Year Alpha
10.68
Yield
0.9 %
Benchmark
MSCI Europe Ex UK Small Cap PR USD
Fund Size
£ 128.85 million
NAV
930
Gearing
105
Discount Premium
-17
To achieve capital growth by investing principally in Continental European quoted smaller companies.
Holding %
Fortnox AB 4.32 %
Sartorius Stedim Biotech SA 3.44 %
MTU Aero Engines AG 3.42 %
CTS Eventim AG & Co. KGaA 3.28 %
VZ Holding AG 3.12 %
Nemetschek SE 2.97 %
MIPS AB 2.95 %
Belimo Holding AG 2.64 %
Esker SA 2.52 %
SimCorp A/S 2.51 %
Region %
Eurozone 54.89 %
Europe - ex Euro 45.11 %
Sector %
Technology 24.78 %
Industrials 19.69 %
Healthcare 16.23 %
Financial Services 13.79 %
Consumer Cyclical 9.70 %
Consumer Defensive 5.08 %
Name
Montanaro Asset Management Limited
Address
EC2R 8AR, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

George Cooke
Joined 01/01/2012

George Cooke graduated from the University of Nottingham in 2005 with an undergraduate degree in Management Studies. He then spent another year of study there at the end of which he was awarded a Masters (with Distinction) in Corporate Strategy & Governance.Immediately following this, he joined the graduate scheme at Aon Benfield (formerly Aon Re). Having completed this scheme, George settled as an analyst within the ReSolutions department, where he specialised in assisting with the capital and runoff issues of insurance and reinsurance companies. During his time at the company, George received a Diploma in Insurance and passed all three levels of the CFA. After three and a half years with Aon Benfield, George joined Montanaro in July 2010.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.