TR European Growth Trust

European Equities

Rated Fund 2017-19. Buys undervalued smaller companies

TR European Growth was named Best European Trust in Money Observer’s 2017 investment trust awards and Best Large Trust in 2018. A 13% collapse in its discount to net assets over the past year masks the fact that it only marginally underperformed its benchmark over the past year. It remains a solid longer-term performer.

Ollie Beckett, its manager since 2011, seeks to achieve the trust’s growth objective by investing primarily in small and medium-sized companies. With a diversified portfolio of 140 holdings, he is prepared to venture well down the size spectrum in search of companies with exceptional growth potential.

Beckett looks for undervalued companies that can either deliver substantial growth or where there is potential for improvements in profitability through self-help. This focus means that he does not try to allocate investments on a country or sector basis. However, the manager stresses that he does pay attention to the make-up of the portfolio to avoid concentration risk.

His emphasis is on seeking to identify situations where he believes the market perception is wrong and the company is undervalued. He and the rest of Janus Henderson’s European equities team are keen to generate their own investment ideas and spend a lot of time meeting companies’ management teams. In that way they get to know and understand the drivers of industries and stocks and can identify companies with strong competitive positions in niche markets.

Beckett also believes that a selling discipline is vital in small company investing and he does not hesitate to take profits, with individual holdings usually representing no more than just over 2% of net assets.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
TR European Growth Trust
Manager
Janus Henderson Investors Ltd
Type
Closed Ended Investment Company
ISIN
GB0009066928
Sector
European Smaller Companies
Launched
06/09/1990
OCF
0.7 %
Risk Rating
4
3 Year Sharpe
0.67
3 Year Alpha
-1.35
Yield
2.3 %
Benchmark
EMIX Smlr European Coms Ex UK TR USD
Fund Size
£ 456.99 million
NAV
1,038
Gearing
110
Discount Premium
-12
The Company seeks capital growth by investing in smaller and medium sized companies which are quoted, domiciled, listed or have operations in Europe.
Holding %
Van Lanschot Kempen NV 2.77 %
Nexans 2.07 %
Gaztransport et technigaz SA 1.94 %
TKH Group NV 1.83 %
Soitec SA 1.81 %
DFDS A/S 1.79 %
Banca Farmafactoring SpA 1.63 %
OC Oerlikon Corp AG, Pfaffikon 1.52 %
Dermapharm Holding SE Bearer Shares 1.47 %
BE Semiconductor Industries NV 1.40 %
Region %
Eurozone 70.31 %
Europe - ex Euro 25.67 %
Sector %
Industrials 28.80 %
Technology 18.67 %
Consumer Cyclical 16.73 %
Financial Services 12.65 %
Basic materials 11.05 %
Name
Janus Henderson Investors Ltd
Address
EC2M 3AE, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Rory Stokes
Joined 06/30/2017

Rory Stokes is a Fund Manager of European equities at Janus Henderson Investors, a position he has held since 2015. Rory joined Henderson in 2013 as a European equity analyst. He worked for Liberum Capital Limited in small- and mid-cap equity sales from 2007 and prior to that held several roles at Credit Suisse. He began his career at HOLT Value Associates as a research analyst in 2001. Rory graduated with a degree in philosophy, politics, and economics from Oxford University. He holds the Chartered Financial Analyst designation and is FCA registered.

Ollie Beckett
Joined 07/01/2011

Ollie Beckett is a Portfolio Manager of European equities at Janus Henderson Investors responsible for the European Focus and International Small Cap Equity strategies. Ollie first joined Henderson as an assistant portfolio manager for European equities upon the firm’s merger with AMP Asset Management in 1998 and was named fund manager in 1999. He moved to the Global Technology Team in 2000. He left Henderson in 2003 to pursue other interests before returning to his current role with the firm in 2005. Ollie received a BA in economics and government from the University of Manchester.

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