European Assets Trust PLC Dividend Declaration (5722Y)
04 Gennaio 2024 - 8:00AM
UK Regulatory
TIDMEAT
RNS Number : 5722Y
European Assets Trust PLC
04 January 2024
To: RNS
From: European Assets Trust PLC ("the Company")
LEI: 213800N61H8P3Z4I8726
Date: 4 January 2024
Dividend announcement
Highlights
-- Continued policy of six per cent dividend per share on
year-end net asset value for annual distribution to
shareholders.
-- Based on the unaudited net asset value of 98.3 pence per
share for 31 December 2023, the total dividend declared for 2024
will be 5.9 pence per share, an increase from 5.8 pence paid in
2023.
-- Dividend to be paid in four equal instalments of 1.475 pence
per share in January, April, July and October 2024.
Dividend for 2024
The Board confirms that the Company's stated and long-standing
distribution policy of declaring, barring unforeseen circumstances,
an annual dividend equivalent to six per cent of the net asset
value per share at the end of the preceding year will be continued
in 2024.
2023 has been a volatile year for markets with interest rate
expectations again driving market direction.
The net asset value per share as at 31 December 2023 was 98.3
pence (31 December 2022: 96.5 pence). As the net asset value per
share ended the year higher this results in an increased total
dividend payable by the Company for 2024 of 5.9 pence per share
(2023: 5.8 pence per share).
The 2024 dividend will be paid in four equal instalments of
1.475 pence per share on 31 January, 30 April, 31 July and 31
October 2024.
The January dividend payment of 1.475 pence per share will be
paid to shareholders on 31 January 2024, having an ex-dividend date
of 11 January 2024 and a record date of 12 January 2024.
Investment Performance and Review
The Company's net asset value total return (capital performance
with dividends reinvested) per share was +8.2 per cent in Sterling
(+ 10.8 per cent in Euros) (unaudited) for the year ended 31
December 2023. Sterling share price total return for the year was
4.9 per cent (7.0 per cent in Euros). These compare with the
Benchmark(1) , which produced a total return of +9.8 per cent in
Sterling (+12.4 per cent in Euros).
Macroeconomic news continued to dominate in 2023. The year began
with optimism that Europe would continue to lead global equities
higher, with China providing further impetus to an improving
outlook. Unfortunately, this proved to be a false dawn as the
Chinese economic re-opening momentum stalled. This was particularly
bad news for the Eurozone, which earns more of its GDP through the
export of goods than most other major advanced economies. Rising
interest rates also started to bite in earnest, pushing European
economic indicators lower.
Frustratingly, inflation also stayed more persistent than
expected, dampening optimism that interest rates would start to
fall and causing the European Central Bank and the US Federal
Reserve to signal that rates would stay 'higher for longer'. This
pushed long-term bond yields higher and global equity markets
significantly lower in the third quarter of the year.
The year, however, ended on a much more positive note as
softening inflation and job market data prompted a more benign
appraisal of interest rates leading to a rally in November and
December.
In a tightening liquidity environment, smaller companies
underperformed their larger counterparts for the second successive
year. Global market leadership was driven by a select group of
companies in the US and by the emergence of two dominant themes;
Generative Artificial Intelligence and a class of weight loss drugs
called GLP-1s. We have exposure to both themes within the portfolio
through holdings in semiconductor equipment producers and
pharmaceutical packaging companies. However, the strength of these
performers was not sufficient to drive outperformance of our
Benchmark.
Despite delivering a positive net asset value total return that
compared well with our peer group, it is disappointing to
relatively underperform our index. There are, however, reasons for
optimism, including the benefits of further integration of Columbia
Threadneedle Investment's businesses. The wider investment team,
now based at a single London location, has access to a greater pool
of research talent which is being reflected in the portfolio
through greater idea generation and an increasing number of
portfolio holdings. Additionally, the attractive valuations of
European smaller companies, following the October sell-off, led us
to increase gearing levels within the portfolio and benefit from
the more positive market conditions experienced towards the end of
the year. We believe the portfolio is now well positioned for the
future as we seek to build on the more recent relative and absolute
outperformance.
For further information contact:
Sam Cosh (Investment Manager) Tel 0131 573 8300
Scott McEllen (Company Secretary) Tel 0131 573 8300
Columbia Threadneedle Investment Business Limited
(1) With effect from 1 June 2023 the benchmark changed from EMIX
Smaller European Companies (ex UK) Index (net) to MSCI Europe
excluding United Kingdom Small Mid Cap (Net Return) Index. For the
year ended 31 December 2023 a time-apportioned composite of both
indices has therefore been calculated and disclosed.
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