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The best performing European small cap funds
Investing in smaller companies often involves greater risk and volatility with the promise of higher rewards, and this perhaps explains why there is a significant disparity between the winners and losers in the European small cap funds space.
There’s no disputing the star performer and it comes from the investment trust ranks – Montanaro European Smaller Companies (MTE) has an enviable track record on both a five and 10-year view.
Its strong performance might explain why it trades at a premium to net asset value of 2.3%.
The strategy is underpinned by an in-house team of 11 sector specialists which help to generate ideas for the fund. The emphasis is on quality stocks and the trust was ahead of the curve in factoring in ESG (environmental, social and governance) issues.
In the open-ended fund space ASI European Smaller Companies (B0XWN47) has doubled investors’ money in the last five years. Managed by Andrew Paisley since 2018, it employs a rigorous selection process to identify stocks with growth and momentum.