The F&C-managed European Assets Trust reported an 8% rise in the six months to June 30, outperforming its benchmark, the HSBC Smaller Europe (ex UK) index, by 1%.
The fund’s growth was attributed to stock selection, with two holdings, TiGenix, a Belgian-based biotech company, and Norkem, an Irish software provider, returning over 100% over the six-month period.
Crispin Longden, the manager of the trust at F&C, has raised holdings in the business services and consumer goods sectors, whilst reducing exposure to industrial goods.
The fund remains underweight in financials, but Longden has committed to reviewing this stance if prices fall back.
The managers’ cautious approach outlook means the fund has maintained a net cash position which stands at 15% of assets.
The fund has a high distribution policy, paying dividends in January, May and August. In 2009, dividends will total €0.36 (£0.31) a share.
European Assets Trust is a small- and mid-cap specialist investment company, incorporated in London and listed in the Netherlands.