European Investment Trust

Glen_Clark

Looks cheap at the moment having not caught up with the fall in Sterling and share price rally?
Price £6.32 - Above average discount 16.5% with a TER of 0.63%
http://markets.ft.com/research/Markets/Tearsheets/Summary?s=EUT:LSE
Spreads and Stamp duty on these small ITs higher than ETFs so not a good bet for a quick profit. But dividends paid in Sterling so no conversion fees. What do you think for a long term hold?

greenglide

I hold European Assets Trust, solely for the income, and it is down 10% from when it was bought. Hey-ho. See no reason to sell.

Also hold Murray International which is up 25% over the same period - around three months.

Not selling either.

green_man

up quite well today.

Divident not high enough for my income portfolio, and as you say pretty wide spread.

All of my income portfolio is up since Brexit, I was hoping for some buying opportunities.

I also have Murray International , and it seems quite volatile but I'll be holding for the income long term hopefully

Glen_Clark

green_man wrote: »

up quite well today.

Well it has a market cap of only £270m, so not many shares available to trade, so the price moves up and down more than the bigger funds. So if you trade any its particularly important to check the latest price before dealing to make sure it isn't wildly out https://www.google.co.uk/finance?q=LON%3AEUT&ei=JTRyV_qBHJLAsAGG9I2QDQ
But looking at the discount it appears a bit undervalued to me, suggesting the long term trend will be up?

bigadaj

Looks like a pressing me bet but even with dividends paid in sterling then I slightly worth about earnings in euros and how the conversion back to sterling will pan out.

I've just been having a look at mercantile, obviously uk focused and not holding the biggest companies, think I might have a punt as it is looking cheap, or was yesterday.

Glen_Clark

Price has risen but book value has risen more. Can't predict day to day prices, but in the long term the price usually catches up with the discount?

Voyager2002

Fascinating... six posts, but no-one has said anything about the underlying assets.

I've just had a quick look: 15% in banking (European banks have suffered recently); almost 13% in Oil and Gas; 10% in Financial Services and Insurance. By country, almost 20 per cent in France.

I invest mainly in Euro-land, but my preference is for Germany and Switzerland, and for sectors such as manufacturing, pharmaceuticals and healthcare. A portfolio such as this is a long way from where I see the main growth in value: of course it could make sense if the management team are good at spotting value and buying when the price is right, but since this IT is down 20 per cent on the last year that seems unlikely to be the case.

Linton

green_man wrote: »

up quite well today.

Divident not high enough for my income portfolio, and as you say pretty wide spread.

All of my income portfolio is up since Brexit, I was hoping for some buying opportunities.

I also have Murray International , and it seems quite volatile but I'll be holding for the income long term hopefully

EAT is a key component of my income portfolio, essential to my strategy of decreasing my income dependence on the UK. I am surprised at the comment on the dividend being low - according to morning star its around 7% which ties in with my receipts.

Re the comments on its asset allocation - note that EAT is a Small Companies fund so wont include the usual big companies found elsewhere.

bigadaj

Voyager2002 wrote: »

Fascinating... six posts, but no-one has said anything about the underlying assets.

I've just had a quick look: 15% in banking (European banks have suffered recently); almost 13% in Oil and Gas; 10% in Financial Services and Insurance. By country, almost 20 per cent in France.

I invest mainly in Euro-land, but my preference is for Germany and Switzerland, and for sectors such as manufacturing, pharmaceuticals and healthcare. A portfolio such as this is a long way from where I see the main growth in value: of course it could make sense if the management team are good at spotting value and buying when the price is right, but since this IT is down 20 per cent on the last year that seems unlikely to be the case.

And Switzerland isn't in euro land.

george4064

Linton wrote: »

EAT is a key component of my income portfolio, essential to my strategy of decreasing my income dependence on the UK. I am surprised at the comment on the dividend being low - according to morning star its around 7% which ties in with my receipts.

Re the comments on its asset allocation - note that EAT is a Small Companies fund so wont include the usual big companies found elsewhere.

I think green_man was referring to EUT instead of EAT.

EAT's policy is to pay an annual dividend of 6% of NAV, so one should expect a near 6% yield if the shares are not trading at an extreme premium or discount (the company actively manage the discount/premium with blocklisting shares/issuing new shares).

green_man

Yes the OP was talking about EUT not EAT, EUT only has a dividend just over 2 %.

However my income portfolio also trys to avoid too much UK exposure so this may have been a reasonable option otherwise.