Interim Management Statement

RNS Number : 4946Z

Montanaro European Smaller C.TstPLC

06 February 2014

 



Montanaro European Smaller Companies Trust plc

Interim Management Statement

For the Period from 1 October 2013 to 31 December 2013

Investment Objective

Montanaro European Smaller Companies Trust plc aims to achieve capital growth by investing principally in Continental European quoted smaller companies.

Performance Summary

Capital Return	As at 31 December 2013	As at  30 September 2013	Movement
Net asset value (000's)	£95,659	£93,013	+2.8%
Net asset value per share	575.1p	559.2p	+2.8%
Benchmark*	211.4	195.7	+8.0%
Share price	513.0p	491.0p	+4.5%
Discount	10.8%	12.2%
Net gearing	6.5%	6.3%

* MSCI Europe SmallCap (ex UK) Index (in Sterling terms)

The net asset value per share shown above has been prepared in accordance with International Financial Reporting Standards ('IFRS').

Review for the Period

The Company's net asset value per share increased by 2.8% during the three month period ended 31 December 2013. This compares to an increase of 8.0% in the benchmark index.

The quarter began with outperformance of low quality, value stocks - a continuation of the trend that has been in place since the middle of 2012. However, as the reporting season drew to a close, it became clear that not all businesses would enjoy the multi-year earnings recovery that has been priced in by the market over the past 18 months. The December market rally thus saw a rotation back in favour of higher quality, growth stocks. These companies form the core of the Company's portfolio and have become attractively valued relative to the broader SmallCap market.

Top Ten Holdings as at 31 December 2013

Company	Country	Percentage of total assets
Vacon	Finland	3.4
Lem Holding	Switzerland	3.3
Belimo Holdings	Switzerland	3.1
AF Group	Sweden	3.1
Christian Hansen	Denmark	3.0
Virbac	France	2.9
Axis Communications	Sweden	2.7
Fuchs Petrolub	Germany	2.7
VZ Holding	Switzerland	2.6
Sartorius	Germany	2.5
Total		29.3

Geographical Analysis as at 31 December 2013

Country	Percentage of total assets
Germany	21.6
Sweden	17.7
Switzerland	11.8
France	10.0
Finland	9.6
Italy	4.9
Spain	4.4
Austria	4.0
Denmark	3.0
Norway	1.7
Netherlands	1.6
Ireland	1.6
Greece	1.2
Belgium	1.2
Liquidity	5.7
Total	100.0

Sector Distribution as at 31 December 2013

Sector	Percentage of total assets
Industrials	26.6
Consumer Discretionary	14.8
Financials	14.5
Healthcare	11.3
Information Technology	8.8
Energy	7.7
Materials	5.7
Consumer Staples	4.9
Liquidity	5.7
Total	100.0

Dividend

As previously announced, an interim dividend in respect of the year ended 31 March 2014 of 1.75p per share was paid on 10 January 2014.

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 31 December 2013 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

Further information regarding the Company, including monthly factsheets, can be found at the Manager's website: www.montanaro.co.uk.

For further information please contact:

Montanaro Asset Management Limited

Tel: [phone]

 

END

 

 

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