Citywire for Financial Professionals
Stay connected:

 

Citywire printed articles sponsored by:


View the video online at http://citywire.co.uk/money/video/a724276

Ollie Beckett: how I turned round TR European Growth

Manager of TR European Growth (TREG) explains how he improved performance of investment trust with a focus on domestic, smaller stocks.

Ollie Beckett: how I turned round TR European Growth

Ollie Beckett, manager of the TR European Growth (TREG.L ) investment trust, succeeded Stephen Peak in the summer of 2011. In this video interview he explains how he returned the fund to its roots as an investor in smaller company shares.

He has also focused the portfolio on stocks exposed to the European economy rather than the global economy and emerging markets. 'Stop apologising for being a European equity fund manager,' as he puts it.

Beckett explains how smaller companies can be more volatile and responsive to changes in economic conditions than larger companies. However, he argues that smaller stocks beat larger stocks in the recovery from the financial crisis. Although he admits the latest economic news from the eurozone has been poor, reviving fears of deflation, over the year newsflow has been better. 'Europe is getting less bad,' he says.

Beckett likes companies that don't let a crisis to waste and take actions to strengthen their position. Many of the companies in he holds, like Wirecard, the processor of online payments, have bought rivals or, like United Internet, have invested in the business, or like Nexity, have taken market share when opponents are struggling.

Over 10 years TREG's shares have delivered a total return of 280%, ranking it bottom out three in its small sector, some way behind JPMorgan European Smaller Companies . Over one year, however, it leads the sector with a 65% return.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

More about this:

Look up the investment trusts

  • TR European Growth (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • JPMorgan European Smaller Comp (Ordinary Share)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

From the Forums

+ Start a new discussion

Read more...

6 ways to save and invest for children

by Gavin Lumsden on Aug 29, 2014 at 17:47

Sorry, this link is not
quite ready yet