Montanaro European Smaller Companies Trust celebrates 20 years of active management
Today, the London Stock Exchange welcomes the Board of Montanaro European Smaller Companies Trust PLC (the ‘Trust’; ticker: MTE) and its investment manager, Montanaro Asset Management (‘MAM’), to the Exchange to celebrate 20 years since MAM was appointed to manage the Trust.
The Trust is a closed-ended investment company listed on the London Stock Exchange. It aims to deliver capital growth by investing in quoted smaller companies across Continental Europe. Its portfolio of around 50 holdings is the result of bottom-up stock selection by MAM’s 18 investment professionals, one of the largest teams in Europe. It is benchmarked against the MSCI Europe ex-UK SmallCap Index.
Over the past two decades, the Trust has navigated the Global Financial Crisis; the Eurozone sovereign debt crisis; the Covid-19 pandemic; shifts in interest rates and investor sentiment; and often challenging macro-economic events. Nonetheless, it has delivered an annualised NAV total return of 10.2%, net of fees, compared with 8.5% for the MSCI Europe ex-UK SmallCap Index and 6.9% for the FTSE All-Share Index (in each case with dividends reinvested).
This strong track record reflects a consistent investment philosophy: identifying profitable, growing businesses with strong market positions and outstanding management teams capable of compounding value over time. While markets have changed considerably since 2006, MAM’s focus on detailed proprietary research, disciplined stock selection and patient ownership has remained constant.
“Twenty years under MAM’s stewardship is an important milestone for the Trust. It reflects our shared conviction that European smaller companies offer compelling opportunities for patient, long-term investors, as well as the dedication of MAM’s investment team in identifying and analysing those businesses. On behalf of the Board, I would like to thank MAM for their hard work and our shareholders for their continued support.”
Gordon Neilly
Chairman of the Trust
The celebration at the London Stock Exchange today marks the enduring partnership between the Trust and MAM. It recognises the shareholders who have supported it and highlights the important role that specialist investment trusts can play in providing access to less-researched areas of public markets.
