TIDMEAT
RNS Number : 1588D
European Assets Trust NV
11 May 2012
European Assets Trust NV
Interim Management Statement
For the three month period from 31 December 2011 to 31 March 2012
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 of other reserves.
Three month period Year ended
Total return# to 31 March 2012 31 December
2011
Euro Sterling Euro Sterling
Net asset value per share 16.0% 15.8% -7.6% -9.9%
Market price per share 12.3% 12.1% -4.5% -6.9%
HSBC Smaller Europe (ex
UK) Index 13.4% 13.1% -21.8% -23.8%
Dividends
The Board has announced dividends of Euro 0.441 per share for the year to 31 December 2012 payable in three instalments in January, May and August. The January dividend was paid on 31 January 2012 and amounted to Euro 0.147 per share (GBP0.122 per share in Sterling terms). The May dividend has been announced at a rate of Euro 0.1614 per share (net rate - Euro 0.147) and will be paid on 31 May 2012. The August dividend is expected to be paid at the same rate as the May dividend.
As at As at As at As at
31 Mar 31 Dec 31 Mar 31 Dec
2012 2011 2012 2011
Capital return Euro Euro Sterling Sterling
Net assets (shareholders'
funds) EUR123.6m EUR109.5m GBP103.0m GBP91.5m
Net asset value per share
- basic EUR8.38 EUR7.36 698.4p 614.8p
Net asset value per share
- treasury* EUR8.34 EUR7.32 694.9p 611.7p
Market price per share EUR7.16 EUR6.51 596.5p 544.0p
HSBC Smaller Europe (ex
UK) Index 326.97 289.66 272.51 241.95
Discount to treasury net
asset value 14.2% 11.1%
Gearing (100 = nil geared
position)++ 108 110
Sources: F&C Investment Business Limited, Datastream.
* - In accordance with the AIC calculation method where shares are held in treasury; subject to the Company's resale policy, including limiting dilution to 0.5 per cent of net asset value per annum. Based on shares held in treasury since the liquidity enhancement policy was put in place in 2005.
- London Stock Exchange prices converted into Euros at relevant exchange rate.
++ - Gearing: The gearing ratio indicates the extra amount by which shareholders' funds would rise or fall if total assets were to rise or fall and is the ratio of total assets (less fixed interest and cash assets) to shareholders' funds.
# - Total return means capital performance with dividends reinvested.
Review of the period to 31 March 2012
The first quarter was good for European small and mid cap equities, with our benchmark, the HSBC Europe Small Cap ex UK, rising +13.1% in Sterling total return terms. Equity markets were generally strong in Q1, but European small and mid caps again performed better than the large cap indices and most global markets. The increase in risk appetite was led by a combination of ECB policy, in the Long Term Refinancing Operations (LTRO), an agreement over the write-down of Greek debt, and improving economic data from the US. The rally however petered out in March as the LTRO ended and the French elections and Dutch political instability refocused investors on the Eurozone crisis.
The Company had a good first quarter with our NAV rising +15.8% in Sterling total return terms, outperforming our benchmark by 2.7%. This was a particularly good performance as the first quarter rally was dominated by lower quality stocks. The entirety of our outperformance occurred in March, when investors began to discriminate between high and low quality businesses again. The outlook, however, is subdued while the authorities attempt to find the right balance between calming markets and pressuring governments into structural reform and austerity. Our strategy will remain consistent though; we invest in quality businesses at good prices, and we expect these assets to thrive relatively in an environment of below trend growth and tight liquidity.
Over the three months ended 31 March 2012 the Company purchased 140,000 Ordinary Shares to be held in treasury for a total consideration of GBP761,000 representing 0.9% of the Ordinary Shares in issue at the beginning of the period. During the period the Company also issued 6,380 Ordinary Shares from treasury via scrip dividend.
Top Ten Holdings
31 Mar
2012
percentage
of net
Company Country assets
Glanbia Ireland 4.9
C&C Group Ireland 4.8
Exact Netherlands 4.0
Azimut Italy 3.5
Rational Germany 3.1
Ringkjoebing Landobank Denmark 3.1
Gerresheimer Germany 3.0
Aer Lingus Ireland 2.9
Nutreco Netherlands 2.9
CTS Eventim Germany 2.8
Total 35.0
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Geographical Analysis
31 Mar 2012 31 Dec 2011
Country percentage percentage
of net assets of net assets
Germany 24.2 21.1
Ireland 22.3 20.1
Spain 10.2 12.2
Italy 9.7 11.0
Netherlands 9.6 12.2
Denmark 7.6 7.3
Switzerland 6.7 6.6
France 4.9 6.3
Norway 4.8 4.5
Finland 2.7 2.8
Austria 2.5 2.5
Belgium 2.2 2.1
Greece 1.0 1.0
Net current liabilities (includes
borrowings) (8.4) (9.7)
Total 100.0 100.0
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Daily and Key Information
The Boards are not aware of any significant events or transactions which have occurred since 31 March 2012 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.
This interim management statement has been prepared solely to provide information to meet regulatory requirements.
For further information please contact:
Wilbert van Twuijver (representing the M anagement Board Director)
Tel 0031 10201 3625
Michael Campbell (Company Secretary)
Tel: 0044 131 718 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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