Edison issues update on European Assets Trust

RNS Number : 8801T

European Assets Trust NV

23 July 2015

 

London, UK, 23 July 2015

Edison issues research update on European Assets Trust

European Assets Trust (EAT) is a concentrated portfolio of small and mid-cap European companies, chosen for their capital appreciation potential. The manager blends stocks that have secure growth characteristics with those that may benefit from re-rating or recovery, although all the companies in the portfolio are likely to be conservatively financed and cash generative. A high distribution policy adopted in 2001 means EAT pays out 6% of its 31 December NAV as a dividend, in three instalments spread throughout the year. This has proved popular with investors and EAT often trades at a premium to NAV. Total returns over the past year have been particularly strong versus benchmark, outperforming by c 18%.

EAT's shares fell briefly to a discount in the market volatility of October 2014, but have since returned to trade close to net asset value, and stood at a 1.6% premium to NAV on 20 July. Demand remains strong, probably owing to the high distribution policy, as well as strong performance from the investment portfolio (+18% over 12 months to 30 June versus -0.3% for the benchmark index). This has led to significant new share issuance and the expansion of the authorised share capital to facilitate further issues (see page 7), which should prevent the premium from rising much above the current level.

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