Launched in 1872, European Assets Trust plc is a UK-Based closed ended investment trust that primarily focuses its investment in quoted small and medium sized companies in Europe, excluding the UK, defined as those with a market capitalization below that of the largest company in the EMIX Smaller European Companies with the aim to deliver long-term capital growth to its shareholders. Its portfolio invests across diversified sector and geographies and does not seek to take advantage of anticipated currency fluctuation. It invests across diversified sector such as Industrials, Consumer Discretionary, technology, financials, consumer staples, healthcare, real estate, basic materials, utilities, and energy.
The company has adopted high distribution policy with the aim to pay dividend of 6% based on the net asset value out of the current year revenue profits and distributable reserves and offered an attractive level of yield both in absolute and relative term to other asset classes, it pays dividend in January, April, July and October of every year. To reduce volatility and manage liquidity of its share relative to its Net Asset Value through its ability to issue or buyback shares dependent on the extent of any share premium or discount. It only invests maximum of 20% of its total assets in any one company and can’t take any legal or management control of companies in which it invests.
Further, it can borrow maximum of 20% of its securities portfolio to increase the return. It compares its performance with its benchmark, Euromoney Smaller European Companies (excluding UK) Index and Based on its regional or industry focus and investment objective the company is classified under European Smaller Companies
The company has no employees, premises, assets other than financial assets or operations, the board outsource its day-to-day operation with the motive to achieve its objectives and strategy to investment manager, BMO Investment Business Limited, which is the subsidiary company of BMO Asset Management PLC Group. The investment manager manages company’s assets, asset allocation, gearing, stock selection and risk. Further, the BMO group is the wholly owned subsidiary of Bank of Montreal and is a part of BMO Global Asset Management.
In March 2019, by means of cross border merger, it migrated to the European Cross- Border merger regulations its legal seat and structure from the Netherland to UK and all assets and liabilities transferred to its wholly owned subsidiary European Assets Trust Plc.
6th Floor Quartermile 4, 7a Nightingale Way, Edinburgh, EH3 9EG, United Kingdom