Fund Information / Factsheet • Jan 23, 2023
Fund Information / Factsheet
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From July 2022, the benchmark changed from the EMIX Smaller European Companies ex UK Index to the MSCI Europe Small Cap ex UK Index.
| Performance over (%) |
6m | 1y | 3y | 5y | 10y | Commentary at a glance |
|---|---|---|---|---|---|---|
| Share price (Total return) |
8.2 | -14.7 | 32.1 | 10.8 | 325.9 | Performance The Company underperformed the MSCI Europe ex UK Small Cap Index during the month. |
| NAV (Total return) |
9.3 | -12.5 | 37.0 | 29.6 | 289.4 | Contributors/detractors Positive contributions came from a number of financial stocks which have been benefitting from the higher interest rate environment, such as Van Lanschot, AIB and Commerzbank, as well as single stock updates. |
| Benchmark (Total return) |
6.0 | -15.7 | 15.6 | 21.8 | 192.6 | |
| Relative NAV (Total return) |
3.2 | 3.2 | 21.4 | 7.8 | 96.8 |
All performance, cumulative growth and annual growth data is sourced from Morningstar.
Source: at 31/12/22. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not predict future returns.
market and currency fluctuations, and you may not get back the amount originally invested.
Outlook We think equities should be in a better place by the end of 2023 as easing interest rate rises could open the door to a degree of more typical share price valuations. However, this cycle might look considerably different from the last 15 years with interest rates likely to settle above the average since the Global Financial Crisis. We continue to deploy capital in a portfolio of what we see as Europe's most attractive small companies, balanced between opportunities across both value and growthstyle stocks.
References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
The Company seeks capital growth by investing in smaller and medium sized companies which are quoted, domiciled, listed or have operations in Europe (excluding the UK).
Providing unique access to Europe's growing smalland medium-sized companies with the sole aim of increasing shareholder capital.
| NAV (cum income) | 174.3p | ||||
|---|---|---|---|---|---|
| NAV (ex income) | 173.3p | ||||
| Share price | 148.0p | ||||
| Discount(-)/premium(+) | -15.1% | ||||
| Yield | 2.9% | ||||
| Net gearing | 11% | ||||
| Net cash | - | ||||
| Total assets Net assets |
£770m £699m |
||||
| Market capitalisation | £593m | ||||
| Total voting rights | 400,867,176 | ||||
| Total number of holdings | 124 | ||||
| Ongoing charges (year end 30 June 2022) |
0.65% | ||||
| Overall Morningstar RatingTM |
| ||||
| Benchmark | MSCI Europe ex UK Small Cap Index |
||||
| Source: BNP Paribas for holdings information and Morningstar for all |
other data. Differences in calculation may occur due to the methodology used.
Please note that the total voting rights in the Company does not include shares held in Treasury.
How to invest Go to www.janushenderson.com/howtoinvest Find out more Go to www.europeansmallercompaniestrust.com
References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
The above geographical breakdown may not add up to 100% as this only shows the top 10.
Utilities 1.0%
Sector breakdown (%)
| Stock code | ESCT | |||
|---|---|---|---|---|
| AIC sector | AIC European Smaller Companies |
|||
| Benchmark | MSCI Europe ex UK Small Cap Index |
|||
| Company type | Conventional (Ords) | |||
| Launch date | 1990 | |||
| Financial year | 30-Jun | |||
| Dividend payment | April, November | |||
| Risk rating (Source: Numis) |
Above average | |||
| Management fee | 0.55% pa on first £800m of net assets and 0.45% pa in excess thereof. |
|||
| Performance fee | Yes | |||
| (See Annual Report & Key Information Document for more information) | ||||
| Regional focus | Pan Europe | |||
| Fund manager appointment |
Ollie Beckett 2011 |
Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested.
How to invest Go to www.janushenderson.com/howtoinvest Customer services 0800 832 832
5.2% 4.5% 4.0%
Germany 15.6% France 15.1% Sweden 10.7% Switzerland 10.0% Italy 9.1% Netherlands 9.0%
Spain Belgium Ireland
Finland 3.7%
European equity markets were broadly flat in December but found some absolute and relative support through the final quarter of 2022. Investors seemed to be weighing up a number of factors including (i) Europe's extreme valuation discount, (ii) US dollar strength offering earnings support for European multinational companies and making European assets compelling targets for merger and acquisition activity, (iii) the fact that Europe could benefit disproportionally from potential Chinese re-opening following Covid lockdowns and the big outlier of a de-escalation in the Ukraine conflict. The pressure from the latter has been eased by an unseasonably warm winter thus far, but fears of energy shortages are likely to remain.
Positive contributions came from a number of financial stocks which have been benefitting from the higher interest rate environment, such as Van Lanschot, AIB and Commerzbank, as well as glass bottling company Veralia, which has so far demonstrated its pricing power by passing on its cost inflation to customers. We also saw good returns from steel dust recycler Befesa, which is viewed as a potential beneficiary of Chinese re-opening. Mytilineos, a Greek electric utility company, delivered the largest positive contribution as there was growing recognition of the company's move towards renewables.
Among the biggest detractors was geological data company
Fugro, which was included in a TV broadcast looking into the Brazilian Brumadinho dam collapse in January 2019, where a number of people tragically lost their lives. The company has previously been absolved of any responsibility and this latest broadcast appears to present no new information. Nevertheless, the fact this issue has resurfaced at a time when domestic policy setters are potentially less sympathetic to international companies has seen its share price penalised. Based on the current facts we have decided to remain holders. Grenergy Renovables also fell short of expectations due to permitting delays of new renewable projects in Spain. While this is frustrating, it seems likely to us that any potential returns linked to these projects are deferred rather than lost and we remain holders.
Activity was limited in December in what is typically a lowliquidity holiday season in Europe. We finished selling a small position in Cherry (computer keyboards) which has disappointed us since the pandemic. We also took the opportunity to top up the Company's holdings in GTT (liquefied natural gas transportation) and Befesa.
We think equities should be in a better place by the end of 2023 as easing interest rate rises could open the door to a degree of more typical share price valuations. However, this cycle might look considerably different from the last 15 years with interest rates likely to settle above the average since the Global Financial Crisis. We continue to deploy capital in a portfolio of what we see as Europe's most attractive small
companies, balanced between opportunities across both value and growth-style stocks.
The amount by which the price per share of an investment company is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.
The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.
The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.
Month end closing mid-market share price multiplied by the number of shares outstanding at month end.
The total value of a fund's assets less its liabilities.
The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).
The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).
The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.
Total assets minus any liabilities such as bank loans or creditors.
A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.
A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.
The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.
The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK Equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.
Closing mid-market share price at month end.
The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.
Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.
Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.
For a full list of terms please visit:
https://www.janushenderson.com/en-gb/investor/glossary/
Overall Morningstar Rating™ is a measure of a fund's risk-adjusted return, relative to similar funds. Fund share classes are rated from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving a single star. Overall Morningstar Rating™ is shown for Janus Henderson share classes achieving a rating of 4 or 5. Ratings should not be taken as a recommendation. For more detailed information about Morningstar Ratings, including its methodology, please go to global.morningstar.com/managerdisclosures.
Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.
Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).
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