Dividend Declaration

RNS Number : 4633B

European Assets Trust NV

07 January 2015

 



To:      RNS

From:  European Assets Trust NV

Date:   7 January 2015

Dividend announcement

·     Total dividends for 2015 increased by 8.5 per cent to Euro 0.7581 per share (2014: Euro 0.699)

·     Net asset value total return (7.7 per cent in Sterling) exceeding the benchmark, the Euromoney Smaller European Companies (ex UK) Index

(-1.9 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 8.5 per cent increase in total 2015 dividends for the Company to Euro 0.7581 per share (2014: Euro 0.699 per share, net). 

The 2015 dividends will be paid in three equal instalments of Euro 0.2527 per share on 30 January, 29 May and 28 August 2015. The January dividend payment of Euro 0.2527 will be paid to shareholders on the register on 16 January 2015, having an ex-dividend date of 15 January 2015.  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 7.7 per cent in Sterling (15.3 per cent in Euros) for the year to 31 December 2014 (unaudited). This compares favourably with the benchmark, the Euromoney Smaller European Companies (ex UK) Index, which produced a total return of -1.9 per cent in Sterling (5.2per cent in Euros).

It is pleasing to see that the Company's NAV delivered a good performance in total returns terms, significantly outperforming the benchmark and the larger companies' indices.  Following a strong 2013, this year was more subdued for European smaller companies, though, making no progress in Sterling terms, and underperforming their larger counterparts. The performance would have been better were it not for the weakness of the Euro against the Pound. Further monetary easing from the European Central Bank and accelerating economic performance from the UK were the main causes of this.

The year was one of two halves for the Company. While we lagged the index materially in the first six months, the second half produced a much stronger performance, yielding a very satisfactory return for the full year. Since June risk appetite has subdued and quality assets have prevailed. This is the environment in which our investment style tends to do well. The improving performance was also boosted by the return of corporate activity to the sector; four of our companies have been approached by acquirers this year. We think that this reflects well on the attractive valuations available in the market currently and the strength of corporate balance sheets, both of which bode well for investors in the asset class.

The end of the year has been volatile for European equities with worries focused on Greece and collapsing oil prices. These concerns seem overdone. The firewall around Greece is much more robust now than when the Euro crisis first erupted and falling oil prices should be a clear positive for companies and their cost bases. Additionally, the weaker Euro should encourage exporters in the region. For an asset class which is valued for little growth, and has the prospect of further corporate activity, we think the long term case for European smaller companies is attractive.

For further information contact:

Sam Cosh (Investment Manager)                                          Tel [phone]

Scott McEllen (Company Secretary)                                      Tel [phone]

F&C Investment Business Limited

Wilbert van Twuijver (Managing Director)

FCA Management BV, Rotterdam                                         Tel [phone]

 

END

 

 

DIVEAKFKELPSEFF