Interim Management Statement

RNS Number : 4675N

Montanaro European Smaller C.TstPLC

28 July 2014

 



Montanaro European Smaller Companies Trust plc

Interim Management Statement

For the Period from 1 April 2014 to 30 June 2014

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 30 June 2014	As at  31 March 2014	Movement
Net asset value (000's) #	£95,962	£98,683	-2.8%
Net asset value per share #	576.9p	593.3p	-2.8%
Benchmark*	219.2	226.1	-3.1%
Share price	515.0p	540.0p	-4.6%
Discount	-10.7%	-9.0%
Net gearing	5.0%	5.4%

# calculated in accordance with International Financial Reporting Standards

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

Review for the Period

The Company's net asset value per share decreased by 2.8% during the three month period ended 30 June 2014. This compares to a decrease of 3.1% in the benchmark index.

Investors turned noticeably more cautious during the quarter, locking in profits and beginning to distance themselves from cyclical recovery stocks in particular. The headwinds that the Company's "Quality Growth" strategy had been facing since the summer of 2012 abated but did not reverse. The companies within the portfolio remain in good financial shape and are cautiously optimistic in their outlook. Gearing net of cash at the end of the period was 5.0 per cent.

Top Ten Holdings as at 30 June 2014

Company	Country	Percentage of total assets
LEM Holding	Switzerland	3.6
AF Group	Sweden	3.1
Avanza	Sweden	3.0
Virbac	France	3.0
Belimo  Holdings	Switzerland	2.9
JM Group	Sweden	2.9
CTS Eventim	Germany	2.6
Schoeller-Bleckmann	Austria	2.5
Vacon	Finland	2.5
Azimut	Italy	2.4
Total		28.5

Geographical Analysis as at 30 June 2014

Country	Percentage of total assets
Germany	21.1
Sweden	16.9
Switzerland	12.0
France	11.5
Italy	7.6
Finland	6.6
Spain	4.6
Austria	3.9
Denmark	2.8
Norway	2.0
Belgium	1.9
Ireland	1.6
Greece	0.9
Liquidity	6.6
Total	100.0

Sector Distribution as at 30 June 2014

Sector	Percentage of total assets
Industrials	22.7
Consumer Discretionary	16.5
Financials	15.3
Information Technology	14.6
Healthcare	8.5
Energy	6.7
Consumer Staples	5.6
Materials	3.5
Liquidity	6.6
Total	100.0

Dividend

As previously announced, a final dividend in respect of the year ended 31 March 2014 of 5.25p per share was paid on 25 July 2014.

Compliance With The Alternative Investment Fund Managers Directive ('AIFM')

The Board is pleased to announce that the Company has entered into arrangements necessary to ensure compliance with the AIFMD.

Following a review of the Company's arrangements, the Board has approved the appointment of its existing investment manager, Montanaro Asset Management Limited ('Montanaro'), as the Company's alternative investment fund manager (the 'AIFM'). Montanaro was approved as an AIFM by the UK's Financial Conduct Authority on 22 July 2014.

The Board has appointed BNY Mellon Trust & Depositary (UK) Limited (the "Depositary") to act as the Company's depositary (as required by the AIFMD) and the Bank of New York Mellon SA/NV will provide custody functions as a delegate of the Depository. 

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 30 June 2014 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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