LF Montanaro European Income Fund
The Fund aims to achieve growth in income and capital over any five-year period by investing at least 60% of its assets in the shares of small and medium sized companies in the European Union, Iceland, Norway and Switzerland that have a maximum market capitalisation of €20 billion.
The full investment objective and policy for the Fund is stated in the Fund’s prospectus.
Why European Small & MidCap for income?
We believe that every investment portfolio should have some exposure to SmallCap, primarily owing to:
- The ‘SmallCap Effect’ – the proven long-term outperformance of smaller and mid-sized companies versus their LargeCap peers*
- Higher dividend growth relative to LargeCap
- Huge choice of companies - many family-owned businesses
- Under-researched, making for an inefficient market ripe with opportunity for those who invest in thorough analysis
- Portfolio diversification - helping to lower portfolio risk
*Source: see research from Dimson & Marsh
How we invest
Our investment process has remained unchanged for many years:
- We invest exclusively in “Quality Growth” companies
- We generate new ideas ourselves (no brokers)
- We do thorough research ourselves, which includes detailed analysis and company site visits
- We integrate ESG fully into company analysis
- We take a conservative approach to valuation
The Fund has been rated by RSMR