Dividend Declaration

RNS Number : 1235X

European Assets Trust NV

08 January 2014

 



To:      RNS

From:  European Assets Trust NV

Date:   8 January 2014

Dividend announcement

·     Total dividends for 2014 increased by 27 per cent to Euro 0.699 per share (2013: Euro 0.5502)

·     Net asset value total return (37.8 per cent in Sterling) exceeding the benchmark, the HSBC Smaller Europe (ex UK) Index (37.5 per cent) over the year.

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

The Board is pleased to confirm that the Company's stated distribution policy will be continued such that the annual dividend will be equivalent to 6 per cent of the net asset value per share at the end of the preceding year. The net asset value per share has recorded an increase over the year which results in a 27 per cent increase in total 2014 dividends for the Company to Euro 0.699 per share (2013: Euro 0.5502 per share, net). 

The 2014 dividends will be paid in three equal instalments of Euro 0.233 per share on 31 January, 30 May and 29 August 2014. The January dividend payment of Euro 0.233 will be paid to shareholders on the register on 17 January 2014, having an ex-dividend date of 15 January 2014.  Dividends are declared in Euros and paid in Euros (bearer shares) or in Sterling (registered shares).

Scrip dividend option

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 37.8 per cent in Sterling (34.4 per cent in Euros) for the year to 31 December 2013 (unaudited). This compares favourably with the benchmark, the HSBC Smaller Europe (ex UK) Index, which produced a total return of 37.5 per cent in Sterling (34.0 per cent in Euros).

In Sterling terms, European small caps delivered a return ahead of any other major index globally in 2013. The asset class has benefitted from attractive valuations and strong corporate fundamentals. However, more recently European equities have attracted greater attention from the wider investment community because the economy, which at the outset of the year was believed to be in perpetual recession, has shown signs of life. Indeed, leading indicators are showing an improving economic outlook for the region.

While we are encouraged by this, we try not to let it distract us from the job in hand; investing in quality companies that generate strong and improving cashflows. This focus has allowed us to outperform, albeit marginally, a strong market which has been led by more cyclical and value areas. It is encouraging to see the businesses that your company owns making strong progress through the year, resulting in increasing cashflows and in many cases, greater payouts in terms of either dividends or buybacks. We continue to look forward with confidence and, despite the performance of the last two years, believe that attractive valuations are now supported by an improving economic environment.

For further information contact:

Sam Cosh (Investment Manager)                                          Tel [phone]

Scott McEllen (Investment Secretarial Executive)                 Tel [phone]

F&C Investment Business Limited

Wilbert van Twuijver (Managing Director)

FCA Management BV, Rotterdam                                         Tel [phone]

 

END

 

 

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