Montanaro European Smaller Companies Trust (MTE) is an investment trust that has a focused portfolio of growing companies selected for the quality of their business franchise, management, earnings and corporate structure. Over time, this emphasis on quality has stood it in good stead, especially in periods where investors become increasingly nervous, as has been the case recently. The result is that MTE is the best-performing European smaller companies trust by some margin (see page 13).
European smaller companies lagged larger ones in the second half of 2018, bucking a long-term trend. There may be good reasons for investors’ unease with the European economy, but the structural growth themes that MTE’s portfolio is exposed to should persist regardless.
Continental European smaller companies
MTE aims to achieve capital growth by investing principally in Continental European quoted smaller companies. The benchmark index is the MSCI Europe ex UK Small Cap Index (in sterling terms).