TR European Growth 30 September 2019
Disclaimer
Disclosure – Independent Investment Research
This is independent research issued by Kepler Partners LLP. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.
The focus for the team at TR European Growth Trust is to deliver capital growth by investing in smaller and medium-sized companies in Europe (excluding the UK).
At the helm of the portfolio is Ollie Beckett, who uses a bottom-up approach to stock selection, splitting companies based on their stage of the life cycle. Depending on the stage, the manager looks at different attributes, valuation metrics and sell signals to understand if a company is intrinsically undervalued. This unique method not only helps the manager to decipher between different opportunities, but also to diversify the fund’s risk exposure.
2018 was a difficult year for the trust, and the correction in Q4 saw the trust lose 19.9%. However, the trust has rallied strongly in 2019 and has delivered NAV total returns of 15.7% year to date. In comparison the EMIX benchmark has returned 14.4%, while the IA and AIC peer groups have returned 14.1% and 16.3% respectively.
As might be expected in the current European climate, the discount for the trust is extremely wide relative to past history. 2018 saw the trust switch from a premium of 1% to a double-digit discount: at the time of writing the discount sits at 17%. The last time the trust was at this level was during the referendum in 2016.
Fund History
