Dividend Declaration

RNS Number : 0098V

European Assets Trust NV

05 January 2012

 



To:      RNS

From:  European Assets Trust NV

Date:   5 January 2012

Dividend Announcement

·     Maintained policy of 6 per cent yield level on net asset value per share for annual distribution to shareholders.

·     Total dividend for 2012 of Euro 0.441 per share to be paid in three equal instalments of Euro 0.147 per share at the end of January, May and August 2012.

·     Outperformance from the Company's net asset value total return (-9.9 per cent in Sterling) compared to the benchmark index (-23.8 per cent) over the year.

The Board announces the dividends expected to be paid by the Company in respect of the year to 31 December 2012.  The Board is pleased to confirm that the Company's stated distribution policy will be maintained such that the annual dividend will be equivalent to 6 per cent of the net asset value per share of the Company at the end of the preceding year. The Company's net asset value per share has recorded a decrease over the year. Consequently, applying the 6 per cent distribution policy for 2012 results in a total dividend for the Company rounded to Euro 0.441 per share (2011: Euro 0.51 per share, net). The 2012 dividend will be paid in three equal instalments of Euro 0.147 per share at the end of January, May and August 2012. The January dividend payment of Euro 0.147 will be paid on 31 January 2012 to shareholders on the register on 13 January 2012, having an ex-dividend date of 11 January 2012.  Dividends are declared in Euros and paid in Euros (bearer shares) or in Sterling (registered shares).

Shareholders may elect to receive dividends by way of further shares in the Company rather than cash.  Where shareholders so elect, they will receive shares based on the net asset value of the Company; the shares may trade in the market at a discount or premium to net asset value. Subject to personal circumstances, UK resident individual shareholders who receive a scrip dividend should not be liable to UK income tax but UK capital gains tax rules should apply.

Investment Performance and Review

The Company's net asset value total return (capital performance with dividends reinvested) per share was -9.9 per cent in Sterling (-7.6 per cent in Euros) for the year to 31 December 2011 (unaudited). This compares favourably with the benchmark index which produced a total return of -23.8 per cent in Sterling (-21.8 per cent in Euros).

European markets had a difficult year as reflected in benchmark index returns. The sovereign debt crisis continued to dominate at the macro level for Europe. Additionally, macro indicators across all regions, including Germany, USA and China, have moved lower to reflect the pervasive economic uncertainty. We are however positive on the medium term outlook for European small and medium-sized companies. The difficult environment that we are seeing should accelerate the transfer of assets from weak to strong hands, and this should provide a good opportunity for investing in quality businesses at excellent prices.

The Company's portfolio value fell materially less than the benchmark index over the year as noted above. This demonstrates a good level of capital preservation in a difficult year for European equities. Shareholders in European Asset Trust are invested in quality businesses, with good underlying economics, that are trading at good valuations. These businesses will continue to take market share in a tough environment. We also believe that the portfolio can benefit from the corporate activity that we expect to continue, which should support the European small and mid capitalised market.

For further information contact:

Sam Cosh (Investment Manager)                              Tel [phone]

Michael Campbell (Company Secretary)                   Tel [phone]

F&C Investment Business Limited

Wilbert van Twuijver (Managing Director)

FCA Management BV, Rotterdam                             Tel [phone]

 

END

 

 

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