28th Jul 2014 10:07
LONDON (Alliance News) - Montanaro European Smaller Companies Trust PLC Monday said that it outperformed its benchmark over a three-month period, though it still reported a decline.
In a statement, the trust, which aims for capital growth by investing predominantly in Continental European-quoted smaller companies, said that its net asset value per share decreased by 2.8% during the three months ended June 30, while the MSCI Europe SmallCap (ex UK) Index (in Sterling terms) decreased by 3.1%.
"Investors turned noticeably more cautious during the quarter, locking in profits and beginning to distance themselves from cyclical recovery stocks in particular," according to the trust's review for the period.
"The headwinds that the company's "Quality Growth" strategy had been facing since the summer of 2012 abated but did not reverse. The companies within the portfolio remain in good financial shape and are cautiously optimistic in their outlook," the review added.
Gearing net of cash at the end of the period was 5.0%, down from 5.4% at the end of March.
Montanaro European Smaller Companies Trust shares were Monday quoted up 0.2% at 501.22 pence.
By Samuel Agini; [email protected]; @samuelagini
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