To:          RNS

From:     European Assets Trust PLC ("the Company")

LEI:         213800N61H8P3Z4I8726

Date:     6 January 2022  

Dividend announcement

Highlights

·    Total dividends declared for 2022 will be 8.80 pence per share.  This represents an increase of 10.0 per cent from the 2021 dividend of 8.00 pence.

·    Continued policy of six per cent dividend on year-end net asset value per share for annual distribution to shareholders.

·    Dividend to be paid in four equal instalments of 2.20 pence per share in January, April, July and October 2022.

·    Share price total return (23.2 per cent in Sterling) and net asset value total return (16.3 per cent in Sterling) (unaudited) exceeding the benchmark, the EMIX Smaller European Companies (ex UK) Index (14.9 per cent) over the year.

Dividend for 2022

The Board is pleased to confirm that the Company's stated 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 2022. 

The net asset value per share increased over the year which will result in an increase in total dividends payable by the Company for 2022 to 8.80 pence per share. This represents an increase of 10.0 per cent from the 2021 dividend of 8.00 pence per share.

The 2022 dividend will be paid in four equal instalments of 2.20 pence per share on 31 January, 29 April, 29 July and 31 October 2022.

The January dividend payment of 2.20 pence per share will be paid to shareholders on 31 January 2022, having an ex-dividend date of 13 January 2022 and a record date of 14 January 2022. 

Investment Performance and Review

The Company's net asset value total return (capital performance with dividends reinvested) per share was 16.3 per cent in Sterling (24.0 per cent in Euros) (unaudited) for the year ended 31 December 2021. Sterling share price total return for the year was 23.2 per cent (31.3 per cent in Euros).  This compares with the benchmark, the EMIX Smaller European Companies (ex UK) Index, which produced a total return of 14.9 per cent in Sterling (22.5 per cent in Euros). 

We are pleased to announce an increase in dividend and a strong NAV total return ahead of the Company's benchmark in what was another year of extreme volatility. 2021 was supposed to be a year of economic driven recovery as the world discarded the restrictions implemented to deal with COVID-19. Unfortunately, while the markets have made good progress, economic activity is still heavily influenced by COVID-19 with the Omicron variant driving a return of social restrictions at the time of writing.

The year had started with optimism and the first half registered most of the year's gains. The rest of the year has, however, been characterised by volatility and uncertainty over both the progress of the fight against COVID-19 and the policy response to rising inflation. The debate on the permanency of the latter and its impact on monetary policy drove wild swings in market leadership. In addition to an uncertain economic outlook and policy framework, companies have had to contend with severely challenged supply chains and rising costs which has held back earnings progress.

Last year's dividend announcement discussed the high levels of portfolio activity in 2020 which was driven by decisions taken in response to rare opportunities offered at the height of the COVID-19 crisis. We are pleased to report that portfolio trading activity has returned to normal levels. This, we believe, reflects the confidence we have in our holdings. The portfolio is a relatively concentrated collection of quality, growth biased businesses that we believe will prosper over the long term, irrespective of the uncertainty that we are currently seeing in the markets.

For further information contact:

Sam Cosh (Investment Manager)                                                             Tel +44 (0)207 628 8000

Scott McEllen (Company Secretary)                                                         Tel +44 (0)207 628 8000

BMO Investment Business Limited