13th May 2016 07:35
LONDON (Alliance News) - European Assets Trust PLC on Friday said its net asset value per share declined in the first quarter, underperforming its benchmark amid difficult market conditions.
The investment trust said its net asset value per share declined 0.4% in the first quarter to the end of March against the end of December. At the end of March, its net asset value per share was 1,091.5 pence, down from 1,120.1p at December 31.
The fund's benchmark, the Euromoney European Smaller Companies (ex UK) Index, rose 2.3% in the same period.
The trust said the first quarter was challenging for equity investors, hit by jitters about a slowdown in the Chinese economy, a weak oil price and deteriorating global economic news.
However, European Assets Trust said this has provided some opportunities to invest, and it started to add some names to its portfolio towards the end of the quarter, having previously decided against investing in the same companies as they had been too expensive at the end of December.
"Our philosophy, process and outlook remains unchanged. We see the European equity market as finely balanced with the slow improvement in economic activity in Europe not yet translating into meaningful profit growth. Valuations look reasonable to us, but we would be more comfortable in aggregate if we had more confidence in corporate Europe's earnings recovery," the trust said in a statement.
European Assets Trust shares were down 1.0% to 1,040.02p Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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