MESCT 20 years investing in Europe's hidden gems
Montanaro European Smaller C.TstPLC
15 September 2026
Montanaro European Smaller Companies Trust celebrates 20 years of investing in Europe's hidden gems
· Annualised NAV total return of 10.2%, net of fees, compared with 8.5% for its benchmark
· Portfolio of around 50 holding selected by one of the largest, most experienced specialist investment teams focused on European SmallCap
· Long-term strategy focused on finding tomorrow's winners at today's prices
Montanaro European Smaller Companies Trust (MESCT) is proud to be celebrating 20 years under the management of Montanaro Asset Management, marking two decades of investing in quoted smaller companies across Continental Europe.
Over the past two decades, the Trust has navigated the Global Financial Crisis, the Eurozone sovereign debt crisis, the Covid-19 pandemic, changing interest rates and investor sentiment, and often challenging macroeconomic conditions. Despite this backdrop, it has delivered an annualised NAV total return of 10.2%, net of fees, compared with 8.5% for the MSCI Europe ex-UK SmallCap Index and 6.9% for the FTSE All-Share Index, in each case with dividends reinvested.
The Trust's portfolio of around 50 holdings is built through bottom-up stock selection by one of the largest specialist teams in Europe. The team seeks to find tomorrow's winners at today's prices by identifying profitable, growing businesses with strong market positions and outstanding management teams capable of compounding value over time.
While markets have changed considerably since 2006, MAM's investment philosophy has remained consistent. Its approach combines detailed proprietary research, disciplined stock selection and patient ownership, with the team meeting management teams and visiting companies across Europe.
Gordon Neilly, Chairman of Montanaro European Smaller Companies Trust, said: "Twenty years under MAM's stewardship is an important milestone for the Trust. Over that period, it has delivered an annualised NAV total return of 10.2%, net of fees, while navigating multiple economic and market cycles.
"This enduring partnership reflects our shared conviction that European smaller companies offer compelling opportunities for patient, long-term investors, as well as the dedication of MAM's investment team in identifying and analysing those businesses.
"On behalf of the Board, I would like to thank our shareholders for their continued support and the team at Montanaro for its commitment to the Trust over the past 20 years."
George Cooke, Portfolio Manager of Montanaro European Smaller Companies Trust, said: "For two decades, the Trust has sought to identify some of Europe's highest-quality smaller companies before they become widely recognised. These businesses are often leaders in specialist markets, with strong competitive advantages and the ability to compound earnings over many years.
"European smaller companies remain relatively under-researched and, following a prolonged period out of favour, valuations are attractive. We believe this presents a compelling opportunity for patient, active investors willing to look beyond short-term market noise."
As MESCT enters its third decade under Montanaro's management, it will continue to offer investors a differentiated way to access the long-term growth potential of European smaller companies.
ENDS
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Notes to Editors
Montanaro European Smaller Companies Trust (LSE: MTE) is a London-listed investment trust aiming for long-term capital growth by investing in high-quality, small-cap companies listed in Europe, particularly within the EU, Norway, and Switzerland. Managed by Montanaro Asset Management, MESCT aims to achieve capital growth by investing in small European quoted companies. It seeks to achieve capital growth in excess of its benchmark, the MSCI Europe SmallCap (ex-UK) Index.
In February 2026, the Association of Investment Companies (AIC) listed MESCT among 68 investment trusts that would have made investors more than £1 million if they had invested the full annual ISA allowance in the same trust each year. This is a reflection of the proven and consistent long-term performance and track record of the Montanaro European Smaller Companies Trust.
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