Dividend Declaration

RNS Number : 0614L

European Assets Trust NV

07 January 2016

 



To:      RNS

From:  European Assets Trust NV

Date:   7 January 2016

Dividend announcement

·    Total dividends for 2016 increased by 20.3 per cent to Euro 0.912 per share (2015: Euro 0.7581)

·    Net asset value total return (20.5 per cent in Sterling) exceeding the benchmark, the Euromoney Smaller European Companies (ex UK) Index (17.2 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 20.3 per cent increase in total 2016 dividends for the Company to Euro 0.912 per share (2015: Euro 0.7581 per share, net).

The 2016 dividends will be paid in three equal instalments of Euro 0.304 per share on 29 January, 31 May and 31 August 2016. The January dividend payment of Euro 0.304 will be paid to shareholders on the register on 15 January 2016, having an ex-dividend date of 14 January 2016.  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 20.5 per cent in Sterling (26.9 per cent in Euros) for the year to 31 December 2015 (unaudited). This compares favourably with the benchmark, the Euromoney Smaller European Companies (ex UK) Index, which produced a total return of 17.2 per cent in Sterling (23.4 per cent in Euros).

2015 was a strong year for European equities as the region finally showed some economic progress, supported by the European Central Bank's expansionist monetary policy, cheaper oil and a lower Euro. While the weaker currency helped improve Europe's competitive position, it did, however, dampen Sterling returns for our shareholders.

Within this supportive environment, smaller companies led the way, significantly outperforming their larger counterparts. This was symptomatic of the change in market leadership away from global growth towards recovery in Europe. The principle beneficiaries of a slowly improving domestic economy, which is seeing better levels of employment and consequently a stronger consumer, are smaller companies who naturally have more exposure in terms of revenues to the region. If the economy continues to make tentative steps forward, we would expect smaller companies to continue to benefit.

We are of course pleased to deliver a return above the index again this year. The portfolio benefitted from its exposure to quality stocks which was a particularly strong theme this year. However, the challenge as we look forward is to find these businesses at attractive prices. Valuations on aggregate look reasonable to us, particularly were there to be profit recovery, however the area of the market where we focus, namely quality companies, is starting to look much richer. It is therefore essential to maintain discipline in our process, which has served us so well in recent years.

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

 

 

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