European Assets Trust : EAT – interims

European Assets Trust has published its interim figures covering the six months ended 30 June 2014.

Over the period European Assets Trust underperformed its benchmark – the total return on net assets was 2.5% in Sterling terms vs. 6.6% for the Euromoney Smaller European companies ex UK Index. The fund’s rating improved however and so the return to shareholders was 3.6%.

The January and May dividends were €0.233 – in Sterling terms 19.16p and 18.93p. The August dividend will be €0.2561.

The managers say that “lower quality assets” rose most in value during the period and, as they were not invested in these, this accounts for their underperformance. Tod’s (the shoe business) and Paddy Power both fell by 24%. They think Azimut and Banca Generali succumbed to profit taking. On the plus side, Jazztel (Spanish broadband), Bolsa y Mercadoes Espanoles (stock exchange), Kuka (robot manufacturer) and Forbo (linoleum flooring all did well.