European Assets Trust

LN: EAT

£440.7m market cap

267.39p last close

EAT is an investment company incorporated in the Netherlands and listed on the LSE and Euronext. It
targets capital growth through investment in quoted small- and medium-sized companies in Europe (ex-UK),
taking the HSBC Europe (ex-UK) Smaller Companies Index as benchmark. A high distribution policy has
been adopted; dividends have been paid from a combination of income and capital.

Investment summary

European Assets Trust (EAT) aims to deliver long-term capital growth through a fundamental approach to investing in small and medium-sized companies in Europe (excluding the UK). The manager, Sam Cosh, also concentrates on the preservation of capital, which is reflected in the focus on quality companies and a disciplined approach to valuation. Over the past 10 years, the trust has delivered an annualised c 14% NAV total return. EAT has a high payout policy and its 6% dividend yield is the highest among peers. Dual listed in the Netherlands and the UK, EAT’s shareholders have approved the migration of the company to the UK, effective in mid-March 2019. This may result in EAT’s inclusion in the FTSE Small Cap and FTSE All-Shares indices, which could increase demand for the shares. Combined with the attractive dividend yield, there is scope for its current wider-than-average discount to NAV to narrow.

Share price graph
Price performance
%
1m
3m
12m
Actual (1.2) (5.9) 1.9
Relative* (7.3) (7.4) (2.1)
52-week high/low 293.5p/262.5p
*% relative to local index
Key management
Sam Cosh Fund manager

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