RCS - MonEuroSmllCosTst - Annual Overview from QuotedData
27/08/2024 09:28
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240827:nRSa8226Ba&default-theme=true RNS Number : 8226B Montanaro European Smaller C.TstPLC 27 August 2024 Montanaro European Smaller Companies - Annual Overview from QuotedData 27(th) August 2024 Primed for ignition With its dedication to high-quality, high-growth companies, Montanaro European Smaller Companies (MTE) has fallen awry of recent market trends. MTE's manager, George Cooke, notes that the market is currently favouring low-quality, low-value companies (such as smaller southern-European banks). This may be due either to improving sentiment around Europe's economy (having seemingly dodged a recession) or the initial effect of falling interest rates, which are typically positive for riskier assets like equities. These are macroeconomic-level events that effect the wider European economy, however, and George is more focused on picking stocks than making bets on the economic outlook. He believes such short-term volatility can create opportunities to pick up positions at attractive valuations. We believe that this not only applies to MTE's underlying holdings, but also to the trust itself. With its shares having previously traded at a premium to net asset value (NAV), MTE derated heavily during 2022 as interest rates rose and economic uncertainty increased. Whilst nerves have settled a little, the current 13.0% discount remains wide relative to history and offers an attractive potential upside. Irrespective of the short-term picture, MTE's NAV returns have still outperformed its peers and benchmark over the long term, and its holdings have shown few signs of diminishing quality or revenue growth in aggregate. Full Research: https://quoteddata.com/research/montanaro-european-smaller-companies-qd/ (https://quoteddata.com/research/montanaro-european-smaller-companies-qd/) This research is also available free on our website www.quoteddata.com (http://www.quoteddata.com) where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required. NB: Marten & Co was paid to produce this note on Montanaro European Smaller Companies Investment Trust Plc, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority. QUOTEDDATA 50 Gresham Street | London EC2V 7AY Tel: +44 (0) 20 3691 9430 www.quoteddata.com (http://www.quoteddata.com) | research@quoteddata.com (mailto:research@quoteddata.com) | www.martenandco.com (http://www.martenandco.com) This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END NRAPPUAPRUPCURM