Fund Information / Factsheet • Jun 22, 2023
Fund Information / Factsheet
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Discrete year performance (%)
31/3/2022 to
31/3/2021 to
31/3/2020 to
31/3/2019 to
31/3/2018 to
from Morningstar.
| From July 2022, the benchmark changed from the EMIX Smaller European |
|---|
| Companies ex UK Index to the MSCI Europe ex UK Small Cap Index. |
| Performance over (%) |
6m | 1y | 3y | 5y | 10y |
|---|---|---|---|---|---|
| Share price (Total return) |
2.2 | 3.6 | 66.8 | 36.0 | 263.7 |
| NAV (Total return) |
5.6 | 0.9 | 56.3 | 38.3 | 236.6 |
| Benchmark (Total return) |
3.1 | -2.7 | 26.5 | 23.3 | 149.7 |
| Relative NAV (Total return) |
2.6 | 3.7 | 29.8 | 15.0 | 86.9 |
Share price (total return)
31/3/2023 5.0 5.2
31/3/2022 -5.4 -3.0
31/3/2021 123.9 106.0
31/3/2020 -24.0 -17.7
31/3/2019 -18.6 -13.3
All performance, cumulative growth and annual growth data is sourced
Source: at 31/05/23. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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.
NAV (total return)
The Company outperformed the MSCI Europe ex UK Small Cap Index during the month.
The portfolio saw positive contributions from the recovery of stocks in the semiconductor and electrical components industries. After years of instability, the Greek economy is recovering, contributing positively to the portfolio through a renewable power company. Poor performance from a Scandinavian media company and a gaming firm, due to slowing subscriber growth and a shrinking market, negatively impacted the portfolio.
Markets are functioning with the expectation that inflation will continue to decrease and that central banks are nearing the end of monetary tightening. Despite the current economic weakness in Europe, including a recession in Germany, valuations are still considered appealing.
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) | 179.4p | |||
|---|---|---|---|---|
| NAV (ex income) | 176.3p | |||
| Share price | 154.0p | |||
| Discount(-)/premium(+) | -14.2% | |||
| Yield | 3.0% | |||
| Net gearing | 14% | |||
| Net cash | - | |||
| Total assets Net assets |
£821m £719m |
|||
| Market capitalisation | £617m | |||
| Total voting rights | 400,867,176 | |||
| Total number of holdings | 132 | |||
| Ongoing charges (year end 30 Jun 2022) |
0.65% | |||
| Benchmark | MSCI Europe ex UK Small Cap Index |
|||
| Overall Morningstar RatingTM As of 31/05/2023 |
||||
| 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 do not include shares held in Treasury. |
Please note the ongoing charge excludes the performance fee.
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. Please refer to glossary for definition of share price total return.
How to invest Go to www.janushenderson.com/howtoinvest Find out more Go to www.europeansmallercompaniestrust.com
Germany 16.1% France 13.9% Sweden 11.7% Netherlands 9.9% Italy 9.9% Switzerland 9.4% Spain 5.0% Belgium 4.5% Greece 3.2%
| Top 10 holdings | (%) | Geographical focus (%) |
|---|---|---|
| TKH Group | 3.4 | |
| Van Lanschot Kempen | 2.9 | |
| DFDS | 2.2 | |
| Mytilineos | 2.1 | |
| u-blox | 2.1 | |
| BFF Bank | 1.8 | |
| SAES Getters | 1.8 | |
| KSB | 1.6 | |
| Criteo | 1.6 | |
| Mersen | 1.5 |
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.
Premium/(discount) of share price to
Ireland 3.1% The above geographical breakdown may not add up
to 100% as this only shows the top 10.
Sector breakdown (%)
Industrials 40.0% Technology 11.8%
Consumer Services 11.5%
Consumer Goods 9.0%
Core Financials 7.5%
Basic Materials 6.1% Financial Services 5.7% Real Estate 2.5% Health Care 2.4% Energy 2.4% Utilities 0.9%
The above sector breakdown may not add up to 100% due to rounding.
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.
Key information
| 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 |
Customer services 0800 832 832
May was another eventful month for markets. There were fresh concerns about regional banks, another interest rate hike from both the US Federal Reserve (Fed) and the European Central Bank (ECB), and the finalisation of negotiations around the US debt ceiling. As the market digested the news, financial assets ended the month weaker. The latest data also showed that the German economy did contract in the first quarter, meaning that along with the fourth quarter contraction last year, the economy was in recession this winter. In China, the data was more mixed. Industrial production and retail sales for April came in below consensus, but there were a few areas of significant outperformance, including a major advance for technology stocks as investors considered the swirling hype around the use of artificial intelligence (AI).
The Company saw positive contributions from the recovery of a couple of stocks after a significant share price decline in April, including u-blox (semiconductor devices) and TKH (electrical components). TKH's share price also benefited from the disposal of its French cabling business. After many years of financial market turmoil, we have seen a turnaround in the Greek economy and had positive contributions from Mytilineos, a Greek energy company which provides renewable power.
negatively impacted performance. We saw disappointing results from the Scandinavian media company Viaplay, which has seen its subscriber growth slow across Nordic and international markets. Modern Times (gaming) also announced poor results as the market has shrunk given the increased trend towards gaming during COVID has been reversing.
Activity included topping up positions in Castellum (real estate investment) and HusCompagniet (construction) where we exercised equity rights and participated in an equity raise respectively.
Markets are operating under the impression that inflation should keep falling and central banks are close to completing monetary tightening. By the end of May, the market was narrowly focused around the hype surrounding AI. We hope it will indeed broaden. In our view, we remain positive about the second half of 2023. With pockets of a weaker European economy, with Germany in recession, we think valuations remain attractive. We maintain a strong valuation discipline and continue to diversify the types of companies that we own, which has served the fund well during recent uncertainty.
Some disappointing company earnings announcements
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.
Share price multiplied by the number of shares in issue, excluding treasury shares, at month end. Shares typically priced mid-market at month-end closing.
The total value of a Company'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 an investment company 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 www.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), (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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