European Assets Trust Behind Benchmark Despite Net Asset Value Rise

LONDON (Alliance News) - European Assets Trust NV on Wednesday said it delivered "strong" full-year results, though "marginally" underperformed against its benchmark index.

The trust said its net asset value total return per share was 22.6% in 2017 on a sterling basis, whereas the benchmark Euromoney Smaller European Companies (ex UK) index delivered a total return of 23.3%. On a euro basis, a total return of 18.0% was delivered against the benchmark return of 18.6%.

NAV per share grew to 1,463.00 euro cents per share as at December 31, from 1,314.00 cents as at the same date a year prior, with shares trading at a "small premium" of 0.7% to NAV, compared to a 8.9% discount in 2016.

The stock was trading down 0.4% on Wednesday at 1,275.10 pence per share.

European Assets Trust Chairman Jack Perry said: "European smaller companies harnessed the widespread improvement in the European economy to deliver a good level of earnings growth throughout the year, again comfortably outperforming their larger counterparts and indeed most global indices. What is particularly encouraging is that while last year showed the first real signs of profit recovery in the region, profits on aggregate are still well behind previous peaks, and therefore the potential for further profit growth is significant."

"In relative terms, a strong first half for the company gave way to a weaker second half, as market leadership transitioned towards more value and cyclical areas. Our investment process focuses predominantly on quality business at attractive valuations, so the components of last year's performance was in line with expectations," Perry added.

The total payout for 2017 was reduced to 72.20p or 82.20 cents per share, compared to the 2016 payout of 75.80p or 94.29 cents. In addition, the trust said it has also paid a dividend for January 2018 of 19.12 pence per share, or 22.00 cents.