Start of 2011 sees investment funds highlight performance

07 January 2011 / by Paul Dicken

An investment trust and fund kicked off 2011 with announcements of positive performance in UK and European equity investments.

The F&C Investments European Assets Trust, which invests in small and medium-sized companies in continental Europe, has maintained a six-per cent dividend payment, calculated at the end of each calendar year, and seen its cash value rise 18 per cent.

The lead manager of the trust Paras Anand, head of European equities at F&C Investments, said on 6 January that he expected a pick-up in merger and acquisition activity in 2011.

“One of the key factors that we believe is underpinning the market is corporate activity; as businesses drive for scale and efficiency, they will look to acquire well-positioned businesses at good prices. We believe that many of the Company’s [trust’s] holdings fit this description.”

The trust aims to produce long-term capital growth and pay a dividend equivalent to six percent of its net asset value per share.

Returns from UK recovery

The Standard Life Investments UK Equity Recovery Fund, launched in March 2009, announced on 7 January that it had produced a return of 150 percent since then.

The company said the fund had been launched during the worst fall in equity markets since 1974 and was designed to give investors – willing to take on a higher degree of risk – an opportunity to capitalise on low stock valuations and negative market sentiment in 2009.

David Cumming, fund manager and head of UK equities at Standard Life Investments, said he was delighted the fund had delivered such a strong return while some UK equities remained attractively valued, and his view was that the recent rally would continue into 2011.

© Fair Investment Company Ltd