If smaller companies produce better long term returns which European trust is right for you?


#1

There are four investment trusts that invest in small and mid-cap companies in Europe, and they have very different strategies and levels of returns.
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#2

You are right Europe isn’t cheap any more but as Draghi is dropping hints about QE it looks like it’s gonna happen.

In a QE scenario TR European growth or the JP Morgan European Smaller Companies will shine through best. If I had to choose one I’d got for TR European, just because Ollie Beckett has being doing pretty well elsewhere but I wouldn’t bet against the JP Morgan trust doing well too.


#3

Hmm, not sure I agree with you there @Steelman. Even if QE does come through Europe if still F’ed economically. They’ve not sorted out the banks yet after all this time.

I’d feel a lot happier with either European Assets or Montanaro because at least they’ll be investing in companies that aren’t likely to go bust. It’s like an insurance policy for every eventuality but you’ve just got to be patient and I am.

In the long term Value always beats growth - like they said in the article above, tortoise and the hare.


#4

I’m a bit of a value man myself but can’t resist a bit of growth when the time is right too. If QE is on the way then you wanna be in TR European Growth or the JP Morgan European Smaller Companies trusts. They’re the ones that will benefit, defo not the other two, they’re lag behind.


#5

It’s hard to decide between these but TR European is the one I think I’m going to go for.

The reason is the manager has done a good job and I think he’ll do better under QE than some of the others.

Not sure I get Montenaro but at a different time I might invest in European Assets.

For me the JP morgan trust is just pipped by TR.