London, UK, 8 July 2022
Edison issues update on The European Smaller Companies Trust (ESCT)
The European Smaller Companies Trust (ESCT) is positioned further down the market capitalisation scale than its AIC peers making full use of its permanent capital base. The stylistically balanced profile incorporating growth, value and core characteristics gives it the potential to outperform over the longer term regardless of shorter-term market leadership. The experienced and long tenured fund manager, Ollie Beckett, believes that the current high levels of inflation will moderate, but will likely settle in the long term in the 3-4% range, presenting differing challenges and a divergent economic landscape for investors to navigate.
ESCT can provide genuine small-cap exposure to investors via an established and efficacious process managed by an experienced team of small-cap specialists. While a niche area, it has diversification benefits and so could appeal to those investors wishing to diversify their large-cap Europe ex-UK exposure or those wishing to access the higher-growth potential of European smaller companies. The combination of an experienced and well-resourced management team, a proven and repeatable investment process and a balanced portfolio not beholden to any one style gives this trust the potential to outperform through a variety of market conditions. It is also arguably the purest small-cap fund in the AIC category with a lower average market cap of its portfolio holdings than that of its peers, which we feel plays appropriately to the strengths of the closed ended structure.
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