TRG.L Regulatory News (TRG)

London, UK, 30 October 2015

Edison initiates coverage on TR European Growth Trust

TR European Growth Trust (TRG) is an established investment trust investing in small and mid-sized continental European companies. Managed by Ollie Beckett at Henderson Global Investors since July 2011 (assisted by Rory Stokes from 2013), its principal aim is to achieve capital growth, although it also has a long record of year-on-year dividend growth. TRG has a longer stock list than its peers, driven by its focus on companies further down the market capitalisation spectrum, where greater diversification may be advised. This focus on the smaller end of the market (as well as a small exposure to unquoted companies) means performance may diverge from that of the benchmark; the trust has outperformed the Euromoney Smaller Europe ex-UK index in four of the last five 12-month periods to 30 September in both NAV and share price total return terms.

At 27 October, TRG's shares were trading at an 11.3% discount to cum-income net asset value. While significantly wider than the 12-month low of 6.4% seen in mid-August, this was still within medium-term ranges, and compares with average levels of 10.9%, 13.0% and 15.3% over one, three and five years respectively. The manager points out that appetite for European smaller company investment is highly dependent on the economic outlook, suggesting potential for the current discount to narrow again if worries about the global economy recede.

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