Meet the Manager

Ollie Beckett has been appointed Fund Manager of TR European Growth Trust PLC with effect from 1 July 2011, replacing Stephen Peak who was Fund Manager of the Company from its launch in September 1990. Ollie is an Associate Director for Henderson Horizon Pan European Smaller Companies. He first joined Henderson Global Investors (AMP Asset Management) in 1998 as an assistant portfolio manager for European Equities before becoming fund manager in 1999. In 2003, he took on the responsibility of managing Global Technology Equities before joining Anglo-Suisse Capital for one year. Ollie returned to Henderson Global Investors in 2005. He is also a member of the Institute of Investment Managers and Research.

Fund Manager's Commentary - April 2012

The overriding theme in April was parliamentary elections, as the discontent of Europe’s voters became apparent at the polls. After seeing new governments in Ireland, Greece, Italy, and Spain it is now the turn of the French, where it looked increasingly likely that we will see a new socialist government, this became reality in May as François Hollande has become the first Socialist president since 1988. The main point of contention is how to generate growth while simultaneously pursuing austerity. Our view is that Germany may have to relax its dogmatic rhetoric and accept that a trade-off needs to be made to avoid prolonging recession. Merkel will be reluctant to upset her electorate but if they do it would be good for equities. Small caps performed largely in line with their large-cap peers.

During April the Trust performed broadly in line with its benchmark index. A notable negative was Inside Secure, a recent initial public offering (IPO) that specialises in near-field communication (NFC). The share price was hit following a poor trading statement . We believe its potentially large market share in an area that will see tremendous growth should see them win new contracts. Faiveley Transport was also a detractor as it had problems with a platform door project in China. On the positive side, Ferragamo responded well to the successful IPO of a peer. Delonghi won the rights to use the Braun brand name, which we expect to cause an increase in sales outside of its core coffee machine products.

Activity over the month included the purchase of Zumtobel which offers lighting solutions and trades at an attractive valuation.

Earnings season has been mixed so far in the Trust, with a general theme of US-exposed stocks doing well. The heavy political calendar will bring volatility, however we feel we are positioned correctly to make good gains.