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TR European Growth (TRG)

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Monday 07 November, 2011

TR European Growth

Interim Management Statement

RNS Number : 6440R
TR European Growth Trust PLC
07 November 2011
 



TR EUROPEAN GROWTH TRUST PLC

 

HENDERSON GLOBAL INVESTORS

 

7 November 2011

 

 

TR EUROPEAN GROWTH TRUST PLC

 

Interim Management Statement

Review of the period from 1 July 2011 to 30 September 2011

 

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

 

The directors confirm the following material events and transactions which have occurred during the period from the Company's year end on 1 July 2011 to 30 September 2011.

 

Portfolio:  New holdings included Faiveley, the French producer of systems and equipment for trains and trams, which has significant global market positions and Rubis, the French bulk liquid storage and LPG distribution company which has a strong competitive position. We also bought a new holding in De'Longhi, the Italian producer of air conditioners and other household appliances which has strong global brands within its product categories. Other new holdings included Stratec, the German producer of automated medical analyzer equipment and D'Ieteren, which owns Autoglass in the UK and similar businesses globally.

 

We sold our holdings in Selçuk Ecza Deposu, the Turkish pharmaceutical distributor, as we look to focus our time on stocks listed in Western Europe and we also sold our holding in Lifewatch, the Swiss producer of telemedicine systems.

 

Gearing:  the Company was 9.4% geared at the end of the quarter (June 2011: 2.4% geared).

 

Dividends:  following shareholder approval at the Annual General Meeting held today, a final dividend of 3.60p per ordinary Share and a special dividend of 0.65p per ordinary Share, in respect of the year ended 30 June 2011, will be paid on 11 November 2011 to holders registered on 14 October 2011.

 

Discount:  the share price discount to net asset value at 30 September 2011 was 16.9% (30 June 2011: 18.2%). The Company remains committed to protecting shareholders interests and will perform share buy- backs in a pragmatic manner. With the current volatility in the market share buy-backs would be exercised with caution. Since the end of June 2011 the Company has bought back 25,000 which have been cancelled.

 

Currency Hedging: In August the fund took out a 3 month forward FX contract buying 10.25 million pounds sterling and selling the same amount in Swiss Francs. This was to hedge our overweight position in Swiss stocks. Investors need to be aware the fund is not hedged for the euro versus sterling.

 

Announcements: on 28 September 2011 the Company announced its results for the year to 30 June 2011.  

 

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 2011

at 30 June 2011

Net assets

£184m

£264m

Net asset value (income-inclusive)

362.8p

522.2p

Ordinary share price

301.4p

427.1p

Discount

16.9%

18.2%

 

 

 

Total Return Performance at 30 September 2011

3 months

1 year

3 years

5 years

Share Price 1

-29.4

-16.8

6.0

-13.8

Net Asset Value per ordinary share 1

-30.7

- 18.9

10.9

-10.4

Benchmark 2

-26.1

-13.9

19.1

3.4

Average European Smaller Investment Trust Net Asset Value 1

-24.8

-9.1

20.9

5.3

 

Sources:

1  Morningstar for the AIC using cum income fair value NAV for 3 months, 1 and 3 years, and capital NAV plus income reinvested for 5 years

2  Datastream.  The Company's benchmark is the HSBC Smaller Europe (ex UK) Index expressed in sterling

 

 

THE PORTFOLIO

 

Top 10 Investments

% of portfolio

 

at 30 September 2011

 

21 Centrale Partners III

3.7

 

Brainlab

3.3

 

OHL

2.4

 

Wirecard

2.3

 

Andritz

1.9

 

SAF-Holland

1.9

 

Schmolz + Bickenbach

1.8

 

Partners Group

1.8

 

Uzin Utz

1.6

 

Norma

1.6

 

Top 10 Investments

% of portfolio

at 30 June 2011

21 Centrale Partners III

4.1

OHL

3.6

SAF-Holland

3.3

Brainlab

2.6

Schmolz + Bickenbach

2.5

Wirecard

2.4

Northland Resources

2.2

Clariant

2.2

Andritz

2.1

Grifols

2.0                 

 

  

 

 

Geographic Breakdown

% at 30 September 2011 

% at 30 June 2011

Austria

5.6

5.7

Belgium

3.6

3.2

Finland

1.4

1.8

France

16.1

15.0

Germany

30.0

27.0

Ireland

1.2

-

Italy

7.4

5.6

Luxembourg

0.7

1.3

Netherlands

5.2

3.9

Norway

6.5

9.1

Spain

3.9

7.3

Sweden

2.8

2.7

Switzerland

14.4

14.8

Ukraine

0.7

0.7

Other

0.5

0.4

 

 

 

Sector Breakdown

% at 30 September 2011

% at 30 June 2011

Basic Materials

13.5

18.3

Business Providers

12.2

13.2

Consumer Goods

9.7

11.5

Financials

12.0

9.4

Industrial Goods

17.0

13.6

Natural Resources

6.8

8.3

Retail Providers

10.6

10.0

Technology

18.2

15.7

 

 

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:

 

Ollie Beckett

Fund Manager

TR European Growth Trust PLC

Telephone: 020 7818 4331

 

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 -

 

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 


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