European Smaller Companies Tst PLC Update on The European Smaller Companies Trust
August 09 2023 - 2:15AM
RNS Non-Regulatory
TIDMESCT
European Smaller Companies Tst PLC
09 August 2023
London, UK, 9 August 2023
Edison issues update on The European Smaller Companies Trust
(ESCT)
In contrast to many industry participants, The European Smaller
Companies Trust's manager, Ollie Beckett, is positive about the
prospects for European small-cap companies as he believes that low
valuations discount a recession. Although small-cap equities have
outperformed large caps in Europe over the long term, unusually,
small caps are currently in their third consecutive year of
underperformance in anticipation of an economic downturn. The
trust's cyclical bias and a double-digit share price discount to
NAV suggest a potentially attractive entry point if the European
economy proves more resilient than many expect.
Now could be a favourable time to consider ESCT as European
small-cap equities are trading at the lower end of their historical
valuation range. Also, the trust's 13.2% share price discount to
NAV is wider than most of its peers' despite ESCT's high-ranking
NAV returns and is above its own 11.9% 10-year average. Given the
trust's cyclical bias and a meaningful level of net gearing, ESCT's
shares have the potential to re-rate if there is a recovery in the
European economy.
Click here to view the full report.
All reports published by Edison are available to download free
of charge from its website
www.edisongroup.com
About Edison: E dison is a leading research and investor
relations consultancy, connecting listed companies to the widest
pool of global investors. By focusing on the volume and quality of
investors reached - across institutions, family offices, wealth
managers and retail investors - Edison can create and gauge intent
to purchase, even in the darkest pools of capital, and then make
introductions via non-deal roadshows, events or virtual
meetings.
Having been the first company in-market 17 years ago, Edison has
more than 100 employees and covers every economic sector.
Headquartered in London, Edison also has offices in New York,
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investment advice. Edison's reports are not solicitations to buy or
sell any securities.
For more information, please contact Edison:
Mel Jenner +44 (0)20 3077 5700
investmenttrusts@edisongroup.com
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