Ollie Beckett, Portfolio Manager of The European Smaller Companies Trust, provides an update on the Trust - discussing factors currently affecting the European market, including supply chain disruptions, higher inflation, and energy costs. Ollie also highlights how he is navigating this market environment and why European smaller companies might be positioned to benefit from the transition towards clean energy.

Key takeaways:

  • After a strong 2021, European smaller companies have struggled to begin the year. The war in Ukraine has exacerbated supply chain disruptions and pushed up inflation, subsequently raising the prospects for faster-than-expected interest rate hikes.
  • A focus on valuation was helpful higher interest rate expectations weighed on sectors with high valuations, growth-oriented technology stocks.
  • The war in Ukraine has highlighted that the world needs to speed up the transition towards cleaner, renewable energy, and European smaller companies are positioned to benefit from this.