European Assets Trust (LSE: EAT)

Currency in GBP

Last close As at 03/02/2023

GBP0.97

1.60 (1.68%)

Market capitalisation

GBP342m

European Assets Trust was launched as a Dutch company in 1972 and was previously dual listed on the LSE and Euronext Amsterdam exchanges. The trust formally migrated from the Netherlands to the UK on 16 March 2019. It targets capital growth through investment in quoted small and medium-sized companies in Europe (ex-UK), using the EMIX Smaller Europe ex-UK Index as a benchmark.

Equity Analyst

David Holder

David Holder

Associate Director, Investment Trusts

Key Management

  • Sam Cosh

    Fund manager

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 5.5 11.3 (23.3)
Relative (0.1) 1.1 (24.2)
52 week high/low 124.0p/77.2p

Overview

European smaller companies’ funds focused on growth investing have had a torrid 2022 as soaring inflation, rising interest rates, cost of living pressures and slowing economic growth have prompted increasing investor risk aversion, resulting in a dramatic sell-off for long-duration growth assets. EAT has not been immune to such pressures despite its focus on growing, high-quality, well-capitalised and modestly indebted companies. In our last update, Well placed to deliver further capital growth, we made the case for the EAT’s place in this niche area of investment. Performance of the asset class has since deteriorated further, with the possible headwinds for European smaller companies strengthening. However, investors can take comfort in the investment process established by experienced fund managers Sam Cosh and Lucy Morris, which they have used here since 2011 to good effect.

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