European Assets Trust NV Interim Management Statement (1462D)
25 April 2017 - 4:00PM
UK Regulatory
TIDMEAT
RNS Number : 1462D
European Assets Trust NV
25 April 2017
European Assets Trust NV
Interim Management Statement
For the three month period from 31 December 2016 to 31 March
2017
Investment Objective
The investment objective of the Company is to achieve growth of
capital through investment in quoted small and medium-sized
companies in Europe, excluding the United Kingdom.
A high distribution policy has been adopted and dividends have
been paid mainly out current year net profits and other
reserves.
Three month Year ended
Total return# period 31 December
ended 31 March 2016
2017
Euro Sterling Euro Sterling
Net asset value per
share 9.0% 9.2% -7.3% 7.4%
Market price per share 15.0% 15.3% -16.1% -2.7%
Euromoney European
Smaller Companies
(ex UK) Index 7.6% 7.8% 6.4% 23.3%
Dividends
The Board has announced dividends of Euro 0.7884 per share for
the year to 31 December 2017 payable in three instalments in
January, May and August. The January dividend was paid on 31
January 2017 and amounted to Euro 0.2628 per share (GBP0.228 per
share in Sterling terms in comparison to GBP0.234 paid in January
2016 - a reduction of 2.6%).
As at As at As at As at
31 Mar 31 Dec 31 Mar 31 Dec
2017 2016 2017 2016
Capital return Euro Euro Sterling Sterling
Net assets (shareholders'
funds) EUR466.2m EUR436.2m GBP398.8m GBP372.3m
Net asset value
per share EUR14.04 EUR13.14 GBP12.01 GBP11.22
Market price per GBP11.53 GBP10.22
share
Euromoney European
Smaller Companies
(ex UK) Index 617.80 576.09 528.40 491.75
Discount to net
asset value 4.0% 8.9%
Gearing (100% =
nil geared position)++ 100% 96%
Sources: F&C Investment Business Limited, Datastream.
As at 21 April 2017, the latest practicable date prior to
publication the net asset value per share was GBP11.98, the share
price GBP11.84 and the discount 1.2%.
++ - Gearing: The gearing ratio is total assets (less cash and
cash equivalents) divided by shareholders' funds expressed as a
percentage.
# - Total return means capital performance with dividends
reinvested.
Review of the period to 31 March 2017
Following a challenging year in 2016 we achieved a much improved
performance in a buoyant market during the first quarter. Our NAV
delivered a total return in Sterling terms of +9.2% against an
index return of +7.8%. The year started particularly well for
smaller companies who outperformed their larger counterparts. This
is perhaps because the European economy, to which they are
principally exposed, made good progress through the first quarter
offsetting investor concerns over political uncertainty in the
region. It is particularly encouraging for European investors that
this economic performance appears to be filtering through to
company results with earnings expectations now rising. In contrast
to the US, European profits on aggregate have made little progress
since the crisis, however with leading indicators continuing to be
supportive, we see an opportunity for sustained profit progress
delivering further good equity returns for investors.
We must however balance this optimism with a note of caution.
Europe faces a number of political hurdles this year, and whilst it
appears that these concerns may be overdone, recent history
suggests that predicting political outcomes, or indeed the impact
on markets of these outcomes, is not a sensible course of action.
Additionally valuations are not obviously attractive and do need
profit recovery to be sustained. We will therefore continue to
execute our process of selecting good businesses on their
individual merits and trust that this is the best way to deliver
long term returns for shareholders. Following the challenges of
2016, our belief is bolstered by a positive start to 2017. We are
also particularly pleased that the stocks added to the portfolio
since the start of 2016 have in aggregate contributed positively to
the portfolio's performance, demonstrating the strength of our idea
generation.
Over the three month period ended 31 March 2017 the Company
issued 8,807 Ordinary Shares via scrip dividend. Of its current
blocklisting facility as at 31 March 2017, 3.3 million shares
remain available for issuance.
Top Ten Holdings
31 March
2017
percentage
Company Country of net
assets
Cerved Information
Solutions Italy 4.3
Gerresheimer Germany 4.1
Forbo Switzerland 3.8
Origin Enterprises Ireland 3.7
CTS Eventim Germany 3.5
ASM International Netherlands 3.5
IMCD Group Netherlands 3.4
Glanbia Ireland 3.4
Storebrand Norway 3.2
Irish Continental Ireland 3.2
Total 36.1
------------
Geographical Analysis
31 Mar 31 Dec
2017 2016
Country percentage percentage
of net of net
assets assets
Germany 20.3 19.3
Ireland 14.4 15.2
Italy 12.8 12.9
Spain 8.6 6.9
Norway 7.9 7.6
Sweden 7.8 7.3
Switzerland 7.4 6.6
Netherlands 6.9 6.5
Denmark 4.6 4.2
France 4.2 2.8
Finland 3.0 3.6
Portugal 2.2 3.1
Net (current liabilities)/
assets (0.1) 4.0
Total 100.0 100.0
------------- -------------
Daily and Key Information
The Board is not aware of any other significant events or
transactions which have occurred since 31 March 2017 and the date
of publication of this statement which would have a material impact
on the financial position of the Company.
Further information regarding the Company, including daily net
asset values published since the end of the period and monthly
factsheets, can be found at the Company's website
www.europeanassets.eu, or at www.fandc.com.
For further information please contact:
Sam Cosh (Fund Manager)
Tel: 0044 207 628 8000
Scott McEllen (Company Secretary)
Tel: 0044 131 718 1000
Wilbert van Twuijver (representing the Management Board
Director)
Tel 0031 10201 3625
This information is provided by RNS
The company news service from the London Stock Exchange
END
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