Edison Investment Research - TR European Growth Trust PLC (TRG) TR European Growth Trust - Finding small-cap value opportunities

Report

Edison Investment Research

Sarah Godfrey

TR European Growth Trust - Finding small-cap value opportunities

TR European Growth Trust (TRG) has seen its share price de-rate substantially over the past 18 months, from a cÂ 3% premium to NAV to a cÂ 15% discount, following a period in which its small-cap value style of investing has been out of favour with investors. However, its NAV has risen cÂ 13% year to date, with lead manager Ollie Beckett taking advantage of depressed valuations in smaller European companies whose growth potential he believes is underappreciated by the wider market. The portfolio is diverse, with cÂ 140 holdings broadly spread by country and industry sector. TRG has a more value-oriented investment approach than its peers and is more exposed to stocks at the lower end of the market capitalisation spectrum, which have greater potential to grow exponentially. The largest positions rarely exceed cÂ 2%, which limits stock-specific risk, while a well-covered cÂ 2.5% dividend yield provides support for total returns in periods of market volatility.

18/06/2019 10 EN

Underlying

TR European Growth Trust PLC

TR European Growth Trust operates as an investment trust. Co. is focused on investing in smaller and medium sized companies. Investments may include shares, securities and related financial instruments, including derivatives. Co. has appointed Henderson Investment Funds Limited to act as its Alternative Investment Fund Manager.

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GB0009066928 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Sarah Godfrey

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TR European Growth Trust - Finding small-cap value opportunities

TR European Growth Trust - Making changes but keeping successful approach

TR European Growth Trust - Making changes but keeping successful approach

TR European Growth Trust - Differentiated option at a significant discount

International Public Partnerships - Consistently and responsibly delivering

Portobello SpA - Focus back on the operations

Intralot - Focus on business development in FY24

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