European Assets Trust
Performance, income and a well-balanced portfolio
21 September 2021
European Assets Trust (EAT) aims to achieve long-term growth of capital through investments in smaller European companies (excluding the UK). EAT’s managers Sam Cosh and Lucy Morris believe such companies are often not well-researched or appreciated. This leads to market inefficiencies, which Cosh and Morris seek to exploit to deliver a superior long-term investment performance. The managers grasped the opportunities created by last year’s sharp market sell-off to add new names at attractive prices. These changes are now paying off. The trust has performed particularly strongly in absolute terms over the past year and outperformed the benchmark significantly over one, three and 10 years. The managers are confident that their approach is the best way to keep delivering attractive returns to shareholders, not just for now, but also over the long term. The trust has a high distribution policy that pays a dividend of 6% of NAV as at the end of the preceding financial year – by far the highest yield in its sector. MORE »
High income and improving performance
25 February 2021
European Assets Trust (EAT) seeks to generate long-term capital growth by investing in a concentrated but diverse portfolio of small and medium-sized European companies. The trust has adopted a high distribution policy that pays a dividend of 6% of NAV as at the end of the preceding financial year. Managers Sam Cosh and Lucy Morris used the Q120 market sell-off to improve the quality of the portfolio and these changes are having a favourable impact on EAT’s performance. In the six months to end-January 2021, EAT made positive absolute gains, returning 23.7% in NAV terms, and outperformed the benchmark, which returned 22.2%. The trust has consistently outperformed the UK market over the past 10 years. MORE »
High-yielding outperformer focused on growth
28 August 2020
European Assets Trust (EAT) aims to generate long-term capital growth by investing in a concentrated but diversified portfolio of small- and medium-sized European companies. Managers Sam Cosh and Lucy Morris have seized the opportunity created by the Q1 market sell-off to enhance the quality and growth characteristics of the portfolio. Recent performance shows that their actions are already paying off and they are confident that EAT has the ability to keep delivering solid returns to investors not just short-term, but also over the long-term. EAT’s high payout policy and a recent fee reduction have the potential to enhance its investor appeal. MORE »
Long-term capital growth and income
24 January 2020
European Assets Trust (EAT) aims to generate long-term capital growth through investing in quoted small- to medium-sized companies in Europe, excluding the UK. Over the past 10 years, EAT’s NAV total return (TR) has generated an annualised return of 12.9%. The board has a high payout policy and a 17.2% increase in the declared FY20 dividend results in a forward yield of 6.6%. Previously dual-listed in Amsterdam and London, EAT completed its legal migration to the UK in March 2019. The board believes a premium listing on the London Stock Exchange and becoming a constituent of the FTSE SmallCap and FTSE All-Share indices could broaden EAT’s appeal and help close the trust’s NAV discount over time. MORE »
Long-term capital growth and high yield
10 July 2019
European Assets Trust (EAT) aims to achieve capital growth over the long term through investing in small- and medium-sized companies listed in Europe (ex-UK). Over the past 10 years to end-June 2019, the trust has delivered an annualised NAV total return of 15.1%. EAT also has an attractive 5.6% dividend yield, significantly higher than its peers, reflecting the board’s high distribution policy. The trust completed its legal migration to the UK from the Netherlands in March 2019; previously dual-listed in London and Amsterdam, EAT is now solely traded on the London Stock Exchange (LSE) and is a constituent of the FTSE SmallCap and FTSE All-Share indices. MORE »
Wider than normal discount has scope to narrow
28 January 2019
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. MORE »
Capital growth objective with high yield
11 July 2018
European Assets Trust (EAT) aims to achieve capital growth through investing in listed small- and medium-sized companies in Europe, excluding the UK. It is also focused on capital preservation, seeking quality companies with strong business models and balance sheets that can sustain long-term earnings growth through economic cycles. The trust has delivered annualised NAV total returns of 11.2% over the past 10 years, while a high payout policy supports a generous yield, currently 6.2%. Leading indicators suggest that Europe’s recovery, which started later than many major economies, remains embedded. Notwithstanding higher equities valuations, the manager continues to find attractive investment ideas and is focused on companies’ structural growth characteristics. MORE »
European small-cap specialist with attractive yield
7 February 2018
European Assets Trust (EAT) aims to generate long-term capital growth through investing in listed European small and mid-sized companies. It has a distribution policy to pay 6% of its prior year-end euro-denominated NAV, which supports an attractive yield, currently 5.4%, significantly higher compared with peers. This has helped support a share price premium to EAT’s cum income NAV. The EMIX Smaller Europe ex-UK index had another strong year in 2017, and equity valuations are now more challenging. Notwithstanding, the manager Sam Cosh observes that earnings recoveries are far from mature for many sectors and believes that EAT is well positioned to benefit as Europe’s recovery broadens out. MORE »
European small-cap specialist
10 July 2017
European Assets Trust (EAT) aims to achieve long-term capital growth through investment in small and medium-cap companies in Europe (ex-UK). The investment approach is fundamental and bottom-up; EAT has a solid long-term track record and a high distribution policy underpins an attractive 5.2% yield. 2016 was a challenging year for EAT and NAV total return underperformed the index by 15.9pp. Since then, the performance has stabilised and the shares have returned to a modest premium to NAV (including income). The manager, Sam Cosh, is confident of the trust’s investment philosophy and process and is positive on the economic outlook. MORE »
Sticking to the investment process
3 January 2017
European Assets Trust (EAT) aims to generate long-term capital growth from investment in European small- and mid-cap companies. It also has a high distribution policy; 6% of its euro-denominated NAV is paid out each year. Given the 9.4% discount to NAV, the current dividend yield is 7.8%. While EAT’s near-term performance has trailed the benchmark Euromoney Smaller Europe ex-UK index, exacerbated by the result of the UK’s European referendum, manager Sam Cosh states that his investment philosophy and process have not changed. He suggests that the process is robust and has been successful over the long term; areas of the portfolio that have been weak in the near term are expected to recover. EAT is currently running a net cash position of c 4%. MORE »
Small-cap growth with high distribution policy
11 May 2016
European Assets Trust (EAT) invests in small- and mid-cap companies in Europe with the aim of achieving capital growth. A 6% annual distribution policy has found favour with investors in the low interest rate environment, narrowing the discount in recent years. While short-term performance has been behind the Euromoney Smaller Europe ex-UK index, largely because of a poor showing from some financial services holdings, the fund has a strong long-term track record versus both the index and its peer group. A concentrated portfolio that blends sustainably growing companies with recovery situations, but always with a keen focus on valuation, should mean EAT is capable of benefiting from a range of market conditions. MORE »
Growth and yield from small-cap specialist
21 July 2015
European Assets Trust (EAT) is a concentrated portfolio of small and midcap European companies, chosen for their capital appreciation potential. The manager blends stocks that have secure growth characteristics with those that may benefit from re-rating or recovery, although all the companies in the portfolio are likely to be conservatively financed and cash generative. A high distribution policy adopted in 2001 means EAT pays out 6% of its 31 December NAV as a dividend, in three instalments spread throughout the year. This has proved popular with investors and EAT often trades at a premium to NAV. Total returns over the past year have been particularly strong versus benchmark, outperforming by c 18%. MORE »
Small-cap growth potential with high distributions
30 October 2014
European Assets Trust (EAT) is a concentrated portfolio of 43 (at 30 September) small- and mid-cap European companies chosen for their growth or re-rating potential. It has a high distribution policy, paying out 6% of its 31 December NAV as a dividend in three instalments. While 2014 has seen lacklustre returns from Europe, EAT has a strong longer-term record of share price and NAV performance versus its benchmark, and its focus on quality has offered a measure of protection in recent market volatility. Having traded at a premium for much of the past year, the recent move to a slight discount may present a near-term buying opportunity. MORE »
