Dividend Declaration

RNS Number : 3212L

European Assets Trust NV

08 January 2009

 



To:    RNS

From:  European Assets Trust NV

Date:    8 January 2009

Dividend Announcement

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

• Total dividend for 2009 of Euro 0.324 per share to be paid in three equal instalments of Euro 0.108 per share at the end of January, May and August 2009. 

• Portfolio focused on companies judged to have a viable franchise and longer term potential.

The Board announces the dividends expected to be paid by the Company in respect of the year to 31 December 2009. 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, as described below, has declined over the year as a result of the global financial crisis and steep declines in equity market valuations generally. Consequently, applying the 6 per cent distribution policy for 2009 results in a total dividend for the Company rounded to Euro 0.324 per share (2008: Euro 0.81 per share, net). The 2009 dividend will be paid in three equal instalments of Euro 0.108 per share at the end of January, May and August 2009. The January dividend payment of Euro 0.108 will be paid on 30 January 2009 to shareholders on the register on 16 January 2009, having an ex-dividend date of 14 January 2009.

The reduction in dividend for 2009 of 50 per cent (in Sterling equivalent, as most shareholders receive Sterling dividends) contrasts with annual dividend increases in the past five years (2004-2008) of 27,21,31,23 and 2 per cent respectively. Over this five-year period, shareholders have received total dividends of 243.5p per share, representing 44 per cent of the Company's net asset value per share as at 31 December 2003. 

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. UK resident individual shareholders who receive a scrip dividend will not be liable to UK income tax on such dividend. Instead, UK capital gains tax rules will apply. Elections for scrip dividends must be received by the Company's administrator, Computershare Investor Services PLC, by the record date in order to apply to the dividend payable in that month. Elections for scrip dividends apply to all future dividends until revoked.

Investment Performance and Review

The Company's net asset value total return (capital performance with dividends added back) was -43 per cent in Sterling (-56 per cent in Euros) for the year to 31 December 2008 (unaudited). Over the five year period 2004 to 2008, the Company's net asset value total return has been 30 per cent in Sterling (-6 per cent in Euros) and the share price total return 39 per cent in Sterling (-3 per cent in Euros). 

The magnitude of this year's fall in the continental European smaller companies' market has left the benchmark HSBC Smaller Europe (ex UK) Index back at levels last seen in 2004. The market appeared to stabilise over the summer months as oil prices fell and inflation concerns receded, only for the collapse of Lehman Brothers to rekindle and intensify widespread risk aversion. This finally fed through to the broader economy in the last months of the year with several European countries entering recession as measured by two successive quarters of decline in gross domestic product.  As regards the Company's investment portfolio, we intend to continue to focus on companies which the managers judge, by virtue of their viable franchise and longer term potential, are better positioned to weather the current period of weak economic activity. In our opinion the portfolio is well-placed to benefit from the eventual recovery in European smaller company share prices.

For further information contact:

Crispin Longden (Investment Manager)        Tel [phone]

Michael Campbell (Company Secretary)        Tel [phone] 

F&C Investment Business Limited, Edinburgh

Wilbert van Twuijver (Managing Director)

FCA Management BV, Rotterdam            Tel [phone]

 

END

 

 

DIVEANFPELENEEE