Interim Management Statement

RNS Number : 6124K

Montanaro European Smaller C.TstPLC

31 July 2013

 



Montanaro European Smaller Companies Trust plc

Interim Management Statement

For the Period from 1 April 2013 to 31 July 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 30 June 2013	As at  31 March 2013	Movement
Net asset value (000's) #	£89,120	£93,009	-4.2%
Net asset value per share #	535.8p	559.2p	-4.2%
Benchmark*	176.7	176.4	+0.2%
Share price	473.5p	519.3p	-8.8%
Discount	-11.6%	-7.1%
Net gearing	1.5%	1.5%

# 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 4.2% during the three month period ended 30 June 2013. This compares to an increase of 0.2% in the benchmark index.

In June, the twelve month equity market rally came to an end following comments by the US Federal Reserve about the prospect of quantitative easing being tapered off as soon as next year. Despite markets falling in June, the quarter as a whole recorded a small gain and European SmallCap has outperformed LargeCap by around 5% so far this year. The Company underperformed its benchmark for the quarter as investors continued to be attracted to riskier, lower quality companies. The Manager's quality growth investment style was out of favour during the period.

Top Ten Holdings as at 30 June 2013

Company	Country	Percentage of total assets
Rational	Germany	3.5
Vacon	Finland	3.3
LEM Holding	Switzerland	3.2
Virbac	France	3.0
Christian Hansen	Denmark	3.0
GfK	Germany	2.9
Belimo  Holdings	Switzerland	2.9
AF Group	Sweden	2.6
Sartorius AG	Germany	2.5
Fuchs Petrolub	Germany	2.5
Total		29.4

Geographical Analysis as at 30 June 2013

Country	Percentage of total assets
Germany	24.1
Sweden	16.9
Switzerland	10.5
Finland	9.9
France	6.3
Austria	5.4
Spain	3.6
Denmark	3.0
Norway	2.5
Netherlands	1.7
Ireland	1.5
Greece	1.3
Belgium	1.2
Italy	0.8
Liquidity	11.3
Total	100.0

Sector Distribution as at 30 June 2013

Sector	Percentage of total assets
Industrials	26.0
Healthcare	13.1
Financials	11.8
Consumer Discretionary	11.2
Energy	8.5
Information Technology	7.7
Materials	5.5
Consumer Staples	4.9
Liquidity	11.3
Total	100.0

Dividend

As previously announced, a final dividend in respect of the year ended 31 March 2013 of 5.00p per share will be paid on 26 July 2013.

Subsequent Events

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