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Montanaro to add income remit to Euro small-cap fund

Montanaro to add income remit to Euro small-cap fund

Montanaro Asset Management is planning to convert its Continental European Smaller Companies fund into an income-focused portfolio next month.

The fund house intends to change the name of the £19m fund, run by George Cooke, to Montanaro European Income to reflect the change.

The portfolio - which is separate to Montanaro’s £1bn European Smaller Companies fund - has returned 26.4 per cent since its March 2012 launch compared with a 42.2 per cent return for its MSCI Europe ex-UK Small Cap benchmark, according to the firm.

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The change will bring the portfolio in line with the mandate of the company’s UK-focused Equity Income fund, which also focuses on small caps.

The UK portfolio, run by Charles Montanaro, has returned 57.7 per cent over the past three years compared with a 36.5 per cent average return for the IA UK Equity Income sector.