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TR European Growth (TRG)

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Monday 03 November, 2008

TR European Growth

Interim Management Statement

RNS Number : 3228H
TR European Growth Trust PLC
03 November 2008
 



TR EUROPEAN GROWTH TRUST PLC


HENDERSON GLOBAL INVESTORS 


3 November 2008



TR EUROPEAN GROWTH TRUST PLC


Interim Management Statement 

Review of the period from 1 July 2008 to 30 September 2008



MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD


The directors confirm the following material events and transactions which have occurred since the Company's year end on 30 June 2008.


Market review:  the last quarter has been a torrid time for markets and the extremely negative sentiment meant that the share prices of many companies fell significantly, whether justified by specific newsflow or not. Large negative contributors included Bauer, the German specialist construction and equipment company, and Schoeller-Bleckmann, the Austrian specialist oil drilling equipment producer.


One holding that performed well relative to the market during the quarter was Gerresheimer, the German speciality packaging producer for the pharmaceutical industry. 


Portfolio:  during the period there was net disinvestment of £18.1m and the number of holdings in the portfolio decreased from 84 to 81.  The holdings in Fortis (Benelux banking group), Marfin Investment Group, Givaudan (Swiss flavours and fragrances company) and Ballast Nedam (Dutch construction and services company) were sold.  We initiated a new holding in TF1, the French television channel and media group.  


Gearing:  gearing at the end of the quarter was 3% (at 30 June 20084%).


Dividends:  following shareholder approval at the Annual General Meeting held today, a final dividend of 3.00p per ordinary Share and a special dividend of 2.00p per ordinary Share, in respect of the year ended 30 June 2008, will be paid on 7 November 2008 to holders registered on 10 October 2008.


Discount:  the share price discount to net asset value at 30 September 2008 was 12.5% (30 June 2008: 8.4%).


Share capital:  during the quarter the Company bought back 1,303,500 ordinary shares at a cost of £4.9m.


The directors are not aware of any other significant events or transactions up to the date of this report which would have a material impact on the financial position of the Company.  


PERFORMANCE AND FINANCIAL HIGHLIGHTS


Financial Position

at 30 September 2008

at 30 June 2008 

Total assets

£248m

£346m

Net asset value

340.48p

458.61p

Ordinary share price

298.00p

420.00p

Discount

12.5%

8.4%

Gearing

3.0%

4.0%



Total Return Performance at 30 September 2008

3 months

1 year

3 years

5 years

Share Price

-29.1%

-39.2%

-6.6%

+121.2%

Net Asset Value per ordinary share

-26.0%

-38.2%

-6.0%

+100.0%

Benchmark Net Asset Value * †

-16.4%

-26.7%

+9.5%

+91.2%

Average European Smaller Investment Trust Net Asset Value


-21.7%


-31.8%


+2.8%


+111.7%


Sources: AIC Information Services Limited /      * Datastream

† these figures show the performance of the Company's current benchmark, a blend of 50% of the return of the HSBC Smaller Europe (ex UK) Index and 50% of the return of the S&P/Citigroup EMI Europe (ex UK) Index (both expressed in sterling), which was adopted from 1 July 2004



THE PORTFOLIO


Top 10 Investments at 30 September 2008
Country
% of total assets
Tanganyika Oil
Sweden
4.7
NDS
Other
3.5
21 Centrale Partners
France
2.8
KSK Emerging India                          
Other
2.6
Temenos
Switzerland
2.6
BrainLAB                                           
Germany
2.5
Wolters Kluwer
Belgium
2.5
Puma
Germany
2.5
Selçuk Ecza Deposu
Turkey
2.3
Gerresheimer
Germany
2.2


Top 10 Investments at 30 June 2008
Country
% of total assets
Tanganyika Oil
Sweden
3.6
Temenos
Switzerland
2.8
Regal Petroleum
Other
2.7
Seadrill                                                 
Norway
2.4
Bauer
Germany
2.4
NDS                                                     
Other
2.4
Velcan Energy
France
2.2
Urals Energy
Russia
2.1
Gerresheimer
Germany
2.0
RGI International
Russia
2.0


Sector Breakdown
% at 30 September 2008
% at 30 June 2008
Basic Materials
9.8
12.1
Business Providers
11.9
10.3
Consumer Goods
7.0
6.0
Financials
16.0
16.2
Industrial Goods
12.3
10.7
Natural Resources
29.0
32.8
Retail Providers
1.3
0.9
Technology
12.7
11.0



Geographic Breakdown
% at 30 September 2008
% at 30 June 2008
Austria
4.5
4.5
Belgium
0.6
1.6
Bulgaria
1.4
1.2
Czech Republic
0.9
1.7
Denmark
0.8
1.2
Finland
3.6
3.6
France
16.0
13.1
Germany
11.5
10.3
Greece
1.8
2.6
Italy
8.0
6.5
Kazakhstan
3.2
3.5
Netherlands
9.5
9.3
Norway
5.3
6.0
Romania
0.5
0.4
Russia
2.3
5.6
Spain
5.6
4.9
Sweden
7.9
7.3
Switzerland
3.6
4.7
Turkey
4.3
3.3
Other
8.7
8.7


 

The objective of TR European Growth Trust PLC is to invest predominantly in smaller and medium sized companies in Europe (excluding the UK). The Manager is Henderson Global Investors Limited. Further information on the Company, including an up to date NAV and 

share price information, can be found at www.treuropeangrowth.com



Audley Twiston-Davies

Chairman



For further information, please contact:


Stephen Peak

Fund Manager

TR European Growth Trust PLC

Telephone: 020 7818 4334


James de Sausmarez

Head of Investment Trusts

Henderson Global Investors

Telephone: 020 7818 3349

Sarah Gibbons-Cook

Investor Relations and PR Manager

Henderson Global Investors

Telephone: 020 7818 3198




- ENDS -


This information is provided by RNS
The company news service from the London Stock Exchange
 
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