The performance of the £317m Foreign & Colonial Eurotrust was boosted by the strength of the euro ag...
The performance of the £317m Foreign & Colonial Eurotrust was boosted by the strength of the euro against sterling over the six months to the end of March.
The trust's results for the half-year to March 31 showed a rise in net asset value (NAV) of 351.82p to 358.99p per share.
After making gains at the start of the period, European equities declined, showing a net loss over the six months. But chairman Douglas McDougall said this was more than offset by sterling's weakness against the euro.
Over the period the trust trimmed its overweight position in telecoms after a period of strong performance and further reduced its exposure to insurers on concerns over the impact market falls were having on their solvency positions.
'With the proceeds, we added to sectors more likely to benefit from the eventual pick-up in industrial activity and where valuations seem well supported, such as the automobiles, chemicals and consumer durables,' McDougall said.
The trust kept a neutral weighting in oils as attractive valuations offset the likelihood of a fall in the price of crude in the aftermath of the Iraq war.
NAV continued to grow after the reporting period as the European markets staged a post-Iraq rally, with NAV per share standing at 416.8p on 28 April.
NAV has declined by 22% over the 12 months to 28 May, when the trust was trading on a discount to NAV of 19%, compared to a Europe General sector weighted average of 17.1%. The trust is 4% geared, compared to a sector weighted average net position of 6%.
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