Report and Accounts 2024
European Assets
Trust PLC
Forward looking statements
This document may contain forward looking statements with respect to the financial condition, results of operations and business of the Company.
Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ
materially from those expressed or implied by forward looking statements. The forward looking statements are based on the Directors’ current view
and on information known to them at the date of this document. Nothing should be construed as a profit forecast.
Front cover image: Frankfurt, Germany
Report and Accounts 2024 | 1
Overview
Introduction 2
Company Overview 3
Financial Highlights 4
Summary of Performance 5
Chair’s Statement 7
Strategic Report
Purpose, Strategy and Business Model 10
Investment Managers 13
Investment Manager’s Review 14
Investment Manager’s Investment Philosophy and Process 18
Ten Largest Holdings 20
Investment Portfolio 21
Key Performance Indicators 23
Principal Policies 24
Promoting the Success of the Company–Section 172
Statement 26
Responsible Investment 28
Principal Risks and Changes in the Year 32
Governance Report
Directors 34
Management and Advisers
36
Directors’ Report
37
Corporate Governance Statement
43
Report of the Remuneration and Nomination
Committee
47
Directors’ Remuneration Report
48
Report of the Audit and Risk Committee
51
Report of the Management Engagement Committee
53
Statement of Directors’ Responsibilities
in Respect of the Financial Statements 54
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take,
you are recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other
independent financial adviser authorised under the Financial Services and Markets Act 2000 if you are in the United Kingdom or, if not,
from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your Ordinary Shares in European
Assets Trust PLC please forward this document, together with the accompanying documents, immediately to the purchaser or transferee
or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. If you
have sold or otherwise transferred only part of your holding of shares, you should retain these documents.
Contents
Auditors’ Report 55
Financial Report
Statement of Comprehensive Income 61
Statement of Changes in Equity 62
Statement of Financial Position 63
Statement of Cash Flows 64
Notes to the Accounts 65
Notice of Annual General Meeting 83
Other Information
Other Financial Information (unaudited) 87
Shareholder Information 88
How to Invest 89
Ten Year Record (unaudited) 90
Alternative Performance Measures 91
Glossary of Terms 93
Financial calendar
First interim dividend paid for 2025 31 January 2025
Announcement of annual results 3 April 2025
Second interim dividend paid for 2025 30 April 2025
Annual General Meeting 24 June 2025
Third interim dividend paid for 2025 31 July 2025
Interim results for 2025 announced August 2025
Fourth interim dividend paid for 2025 31 October 2025
2 | European Assets Trust PLC
Introduction
The easy way to access the growth of Europe’s most dynamic smaller companies
Europe’s hugely dynamic smaller companies have generated strong returns over the past 15
years. Most investors ignore this market, which creates a significant opportunity to discover and
capture value. European Assets Trust gives you access to the growth of some of Europe’s best
and most exciting small and mid-cap companies, while rewarding investors through the ups and
downs with a market-leading dividend of six per cent of Net Asset Value.
Our portfolio managers, backed by the global expertise of Columbia Threadneedle’s investment
team, search for smaller European companies that are under-researched and under-valued. We
seek out growing, profitable businesses which are globally competitive.
Investing in European Assets Trust is the easy way to benefit from the growth of Europe’s most
overlooked companies.
Visit our website at www.europeanassets.co.uk
Registered in England and Wales with company registration number 11672363. Legal Entity Identifier 213800N61H8P3Z4I8726
Potential investors are reminded that the value of investments and the income from them may go down as well as up and investors may
not receive back the full amount invested. Tax benefits may vary as a result of statutory changes and their value will depend on individual
circumstances.
European Assets Trust is suitable for retail investors in the UK, professionally advised private clients and institutional investors who seek
growth over the longer term in capital and income, and who understand and are willing to accept the risks and rewards of exposure to
equities.
Overview
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Report and Accounts 2024 | 3
Company Name European Assets Trust PLC
Legal structure
The Company is a public limited company, and an investment trust as defined by
section 833 of the Companies Act 2006.
Domicile United Kingdom – registered in England and Wales
Listing The Company is listed on the Main Market of the London Stock Exchange.
Ticker EAT
Launched 1972
Financial Year End 31 December
Investment Objective
To achieve growth of capital through investment in quoted small and medium-sized
companies in Europe, excluding the United Kingdom. A high distribution policy has
been adopted and dividends have been paid out of current year revenue profits and
the Distributable Reserve. Further details are provided on page 10.
Investment Policy
The investment policy seeks investments in small and medium-sized companies in
Europe, excluding the United Kingdom defined as those with a market capitalisation
below that of the largest company in the MSCI Europe excluding United Kingdom
Small Mid Cap (Net Return) Index. The Company will not invest more than 20 per cent
of its total assets in any one company and does not take legal or management control
of any company in which it invests. Further details are provided on page 10.
Dividend Policy
The Board intends, barring unforeseen circumstances, setting an annual dividend
yield level of 6 per cent on its net asset value at the end of the preceding year. The
dividend is paid in four equal instalments in January, April, July and October each year.
Further details are provided on page 24.
Benchmark MSCI Europe excluding United Kingdom Small Mid Cap (Net Return) Index
The Manager
The Company has been managed by Columbia Threadneedle Investment Business
Limited and its predecessors since 1972.
Investment Managers
Mine Tezgul assisted by Philip Dicken since May 2024. Further details are provided on
page 13.
Number of Portfolio
Holdings
62 as at 31 December 2024. Further details are provided on pages 21 and 22.
Largest Holding
Cairn Homes. This represented 4.0% of net assets as at 31 December 2024. Further
details are provided on page 20.
Top Ten Holdings
The top ten holdings represented 30.2% of net assets as at 31 December 2024.
Further details are provided on page 20.
Gearing
5.0% as at 31 December 2024. The maximum permitted level of gearing is 20%.
Further details are provided on page 91.
Company Overview
4 | European Assets Trust PLC
Financial Highlights
for the year ended 31 December 2024
Share price performance
The Company recorded a Sterling Share Price total return* of -3.6% for the year ended
31 December 2024 in comparison to our Benchmark
(1)
Index which returned +2.4%.
-3.6%
Net Asset Value per share total return
The Sterling Net Asset Value per share total return* was -0.8% for the year ended 31 December
2024 in comparison to our Benchmark
(1)
Index which returned +2.4%. Further analysis of this
performance is provided in the Chair’s Statement and Investment Manager’s Review.
-0.8%
Ongoing charges*
The ongoing charge of the Company during 2024 fell to 1.01% compared to 1.04% for 2023.
1.01%
(1)
Dividend
The Company paid a total dividend of 5.90 pence per share during the year ended 31 December
2024. This was in comparison to 5.80 pence for the year ended 31 December 2023. In
accordance with its aim to pay at a rate of six per cent of the closing Net Asset Value of the
preceding year, the Board has declared a total dividend for 2025 of 5.52 pence per share.
5.90p
(1) Calculated in accordance with the basis recommended by the AIC.
(2) European Assets Trust NV prior to migration on 16 March 2019.
(3) At 1 April 2021 the Benchmark changed from EMIX Smaller European Companies (ex UK) Index (gross) to EMIX Smaller European Companies (ex UK) Index (net). With
effect from 1 June 2023 the Benchmark changed from EMIX Smaller European Companies (ex UK) Index (net) to MSCI Europe excluding United Kingdom Small Mid Cap
(Net Return) Index. A time apportioned composite of each indices has therefore been calculated and disclosed.
* See Alternative Performance Measures on pages 91 and 92 for explanation.
The annualised ten year share price total return was 4.7%.
Long Term Total Return Performance (rebased to 100 at 31 December 2014)
Source: Refinitiv Eikon
.
European Assets Trust
NAV Total Return (Sterling)
(2)
Benchmark Index Total Return
(Sterling)
(3)
European Assets Trust Share
Price Total Return (Sterling)
(2)
80
100
120
140
160
180
200
220
240
260
280
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Report and Accounts 2024 | 5
Overview
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Summary of Performance
Total Return for the year ended 31 December 2024 2023
Sterling Euro Sterling Euro
Net Asset Value per share* (0.8%) 3.9% 8.2% 10.8%
Share Price* (3.6%) 1.0% 4.5% 7.0%
Benchmark Index
(1)
2.4% 7.3% 9.8% 12.4%
Source: Columbia Threadneedle Investments, Refinitiv Eikon
Capital Return for the year ended 31 December 2024 2023
Sterling Euro Sterling Euro
Net assets – millions £330.6 €399.8 £354.0 €408.5
Net Asset Value per share 91.82p 111.05c 98.31p 113.50c
Share Price 80.80p 97.72c
(2)
89.70p 103.50c
(2)
Dividend per share for the year ended 2024 2023
Sterling Sterling
Total dividends paid 5.90p 5.80p
(1) At 1 April 2021 the Benchmark changed from EMIX Smaller European Companies (ex UK) Index (gross) to EMIX Smaller European Companies (ex UK) Index (net). With effect from
1 June 2023 the Benchmark changed from EMIX Smaller European Companies (ex UK) Index (net) to MSCI Europe excluding United Kingdom Small Mid Cap (Net Return) Index. A
time apportioned composite of each indices has therefore been calculated and disclosed.
(2) Converted at the relevant exchange rate on the balance sheet date.
* See Alternative Performance Measures on pages 91 and 92 for explanation.
Share Price (pence) at 31 December Net Asset Value per share (pence) at 31 December
0.0
30.0
60.0
90.0
120.0
150.0
20242023202220212020
120.25
139.50
91.60
89.70
80.80
0.0
30.0
60.0
90.0
120.0
150.0
180.0
20242023202220212020
132.75
145.93
96.54
98.31
91.82
Source: Columbia Threadneedle Investments Source: Columbia Threadneedle Investments
6 | European Assets Trust PLC
Source: Columbia Threadneedle Investments, Refinitiv Eikon
Average discount during the year ended 31 December 2024 was 11.7% (2023: 8.4% discount).
* See Alternative Performance Measures on pages 91 and 92 for explanation.
At 31 December 2024 2023
Discount to Net Asset Value* (12.0%) (8.8%)
Gearing* (maximum 20%) 5.0% 6.8%
Ongoing Charges* 1.01% 1.04%
2024 Year’s Highs/Lows High Low
Net Asset Value per share 104.1p 91.3p
Share Price 91.8p 80.0p
Discount to Net Asset Value (6.9%) (14.1%)
Net dividends paid/declared^ per share - (pence) Ongoing charges (%)*
0.00
2.00
4.00
6.00
8.00
10.00
20252024202320222021
8.00
8.80
5.80
5.90
5.52
0.00
0.20
0.40
0.60
0.80
1.00
1.20
20242023202220212020
0.95
0.89
1.03
1.04
1.01
^ 2025 Sterling dividends declared.
* See Alternative Performance Measures on pages 91 and 92 for explanation.
Source: Columbia Threadneedle Investments Source: Columbia Threadneedle Investments
Report and Accounts 2024 | 7
Chair’s Statement
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Chair’s Statement
Fellow Shareholders
European Assets Trust PLC (“the Company”) recorded a sterling Net
Asset Value (“NAV”) total return for the year ended 31 December
2024 of -0.8% (euro: +3.9%). This compares to the total return of
its Benchmark, the MSCI Europe (ex UK) Small Mid Cap (Net Return)
Index which rose +2.4% (euro: +7.3%) during the same period. With
the discount widening from 8.8% as at 31 December 2023 to 12.0%
at the year-end, the sterling share price total return for the year was
-3.6% (euro: +1.0%). Stock selection was the main contributor to
underperformance relative to the Benchmark, while the 5% weakening
of the euro vs sterling detracted significantly from the sterling absolute
returns.
The longer-term performance of the Company has also been
disappointing, The sterling NAV total return for the five- and ten-
year periods ended 31 December 2024 are 9.3% and 75.8%
respectively. These compared to 26.3% and 137.1% for the sterling
Benchmark total returns for the same periods.
Market Backdrop
Markets were turbulent during 2024. Although European equities
returned positive performance, progress was less than in the US,
and in both stock markets, small companies lagged large cap.
Macroeconomic factors significantly impacted equity returns,
particularly through fluctuating interest rate expectations. These
expectations were shaped by evolving inflation forecasts which were
influenced by potential trade tariffs and heightened demands on
bond markets, driven by increased European government spending.
Politics also had an effect, both inside and outside Europe.
Trump’s Presidential re-election changed the background for many
companies, particularly those which export into the US which now
face the likely negative impact of tariffs. However, an end to the war
in Ukraine would be welcomed, as would falling energy costs.
In Europe, we witnessed turbulence in French politics and in
Germany a full Bundestag election was scheduled for February
2025 following the collapse of the ruling SDP-led coalition. When
the election took place, it resulted in strong gains for right-wing
parties. The largest vote share was won by the CDU, whose leader
Freidrich Merz is likely to form a new coalition which he will lead as
Chancellor.
Within markets, leadership in the US for much of the year came
from the “Magnificent Seven,” whilst others lagged. Europe was
little different. For most of the year, much of the performance came
from a small number of large companies. In small cap, unlike large
cap, value stocks outperformed growth and quality, and this was
unhelpful given our focus within the Company’s portfolio on stocks
of high quality. This style headwind has been a feature over the
last three years, since the invasion of Ukraine, and returns were
further worsened by disappointing stock selection. However, looking
forward, this means that the relative valuation of the stocks we own
has in most cases become even more attractive.
Portfolio Manager Change
On the 2nd of May 2024, the Board announced that following the
further integration of the European equities team by Columbia
Threadneedle Investments (“the Manager”), Mine Tezgul would
succeed Sam Cosh as the Company’s Lead Investment Manager.
Mine is Head of Pan European Small Cap Equities and is
supported by Philip Dicken, Head of European Equities and Head of
International Equities at the Manager.
The Board acknowledges that the growth of European economies
has faced persistent challenges in recent times. Furthermore, the
recent recovery in European stock markets has largely favoured
large-cap and value companies – areas that fall outside the
Company’s focus on quality growth investments. Nevertheless,
the Board is dissatisfied with the overall investment performance,
particularly the disappointing stock selection. We are closely
monitoring the new team’s implementation of the investment
process to assess the impact on performance relative to both the
Benchmark and the Company’s peer group.
“Following two years of smaller company underperformance versus larger companies,
valuations look attractive. History would suggest that these are good opportunities to
buy into the long-term favourable characteristics of smaller growth companies.”
Stuart Paterson, Chair
8 | European Assets Trust PLC
million. In comparison, the cost of the 2024 dividend was £21.2
million.
The 2025 dividend of 5.52 pence per share is payable in four equal
instalments of 1.38 pence on 31 January, 30 April, 31 July and 31
October 2025. As at 31 December 2024 this represented a share
price yield of 6.8%.
Gearing
In March 2024, the Company entered into a multi-currency revolving
loan agreement with The Royal Bank of Scotland International,
London Branch (“RBSI”) with a maximum potential facility of £60
million. This replaced a similar but smaller facility with The Bank of
Nova Scotia, London Branch. Following the year end, the Company’s
loan facility with RBSI was extended until February 2026 on similar
terms.
The Company had net debt at 31 December 2024 of £16.4 million
(31 December 2023: (£23.9 million)). This represented gearing
of 5.0% (31 December 2023: 6.8%). There was, however, a higher
average level of gearing employed during 2024 in comparison to the
prior year.
Directorate Change
European Assets Trust PLC (“EAT PLC”) was incorporated on 12
November 2018. EAT PLC is the UK domiciled successor of the
Company’s Dutch predecessor, European Assets Trust NV (“EAT NV”)
which was dissolved on 16 March 2019. All the directors of the
Supervisory Board of EAT NV were appointed to the Board of EAT PLC
on the date of its incorporation. Although EAT PLC and EAT NV were
separate legal entities, for governance purposes, the Board regards
the date of first appointment to the Supervisory Board of EAT NV as
the date of appointment to the continuing business.
The Board recognises the value in both attracting fresh talent and
the maintenance of continuity and accordingly a plan has been
developed to ensure an orderly succession as Directors retire. As
part of this plan it is anticipated that Martin Breuer will retire from
the Board at the conclusion of the Company’s AGM to be held on
24 June 2025. Martin was appointed as a Director of the
Supervisory Board of the Company’s Dutch predecessor, European
Assets Trust NV, in May 2016 and upon retirement will have served
nine years between both entities. On behalf of the Board and
Shareholders of the Company I thank Martin for his diligence and
insight throughout his period of appointment.
As a further part of the Board’s succession plan and following a
thorough selection process which included the services of a search
company, Monica Tepes was appointed to the Board with effect
from 7 February 2025. Monica brings 20 years of investment trust
experience built in a variety of roles, buy-side and sell-side, which
Amendment to the Investment Management Fee
On the 2nd of May 2024 the Board also announced an amendment
to the basis of calculation of the investment management fee
payable to the Manager. Previously, the Manager received a fee
equal to 0.75% per annum of the value of funds under management
up to €400 million, and in cases where the value of funds under
management exceeded €400 million, the applicable rate over such
excess value was 0.6% per annum.
Following the amendment, which was effective from 1 January 2024,
the funds under management to which the applicable rate of 0.75%
is applied has been lowered from €400 million to €300 million. For
funds under management in excess of €300 million, the applicable
rate has been reduced from 0.60% to 0.55% per annum. The basis
of calculation for funds under management remains unchanged.
The impact of this change was to reduce the 2024 management fee
payable from £2.8 million to £2.6 million.
Share Price Discount
As at 31 December 2024 the share price discount was 12.0%. This
was in comparison to 8.8% as at 31 December 2023. The discount
also widened relative to those reported by the Company’s peer group
and resulted in a subdued share price total return for investors for
the year. The Board recognises the importance of movements in
the Company’s discount upon the return that investors receive and
monitors closely the discount’s absolute and relative levels.
At the Annual General Meeting (“AGM”) to be held on 24 June 2025,
the Board will seek to renew the authority from Shareholders to buy
back up to 14.99% of the Company’s share capital. Buybacks can
only be made at a cost per share which is below the prevailing NAV.
Shares bought back will be held in treasury. At the forthcoming AGM
the Board will also seek authority from Shareholders to re-issue
treasury shares or issue new shares, subject to limitations on the
number and price. The Board seeks these authorities to allow the
Company to intervene in the market for its shares when considered
appropriate to do so. During the year ended 31 December 2024 the
Company did not buyback nor issue any of its shares (2023:none).
Dividend
The level of dividend paid each year is determined in accordance
with the Company’s distribution policy. The Company has stated that,
barring unforeseen circumstances, it will pay an annual dividend
equivalent to six per cent of its NAV at the end of the preceding
year. As the NAV per share of the Company has decreased since 31
December 2023, the dividend has also decreased from 5.90 pence
per share in 2024 to 5.52 pence per share in 2025.
The Company’s dividend is funded from a combination of current
year revenue profits and the Distributable Reserve. As at 31
December 2024, the value of the Distributable Reserve was £266.8
Report and Accounts 2024 | 9
Chair’s Statement
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
have given her varied insights into the sector. Monica is currently a
non-executive director of Golden Prospect Precious Metals Limited.
From 2017 to 2023 she was a director at finnCap Capital Markets
Limited (now Cavendish Capital Markets Limited), where she
cofounded and developed the Investment Companies team. Prior
to this she was Head of Investment Companies Research at Cantor
Fitzgerald Europe and a no.1 Extel rated alternatives funds analyst.
She began her career as a funds analyst and assistant portfolio
manager at Killik & Co Wealth Managers. She is a member of the
AIC Statistics Committee, a CFA charterholder and has a degree in
Finance, Insurance, Banks and Capital Markets from the Academy
of Economic Studies Bucharest.
Annual General Meeting
The Company’s AGM will be held at 3.00 pm on 24 June 2025 at
the offices of Columbia Threadneedle Investments, Cannon Place,
78 Cannon Street, London EC4N 6AG. This will be followed by a
presentation by the Investment Manager on the Company and its
investment portfolio.
For Shareholders who are unable to attend the meeting, any
questions they may have regarding the resolutions proposed at
the AGM or the performance of the Company can be directed to a
dedicated email account, eatagm@columbiathreadneedle.com, by
9.00am on 17 June 2025. The Board will endeavour to ensure that
questions received by such date will be addressed at the meeting.
The meeting will be recorded and will be available to view on the
Company’s website, www.europeanassets.co.uk shortly thereafter.
In addition, the AGM and Investment Manager presentation will
be broadcast live on the Investor Meet Company platform. This
broadcast is open to all existing and potential Shareholders to
view. Questions can be submitted pre-event via the Investor Meet
Company dashboard up until 9.00am on 23 June 2025. Investors
can sign up to Investor Meet Company for free and add to meet
European Assets Trust plc via: www.investormeetcompany.com/
european-assets-trust-plc/register-investor. Investors who already
follow European Assets Trust plc on the Investor Meet Company
platform will automatically be invited.
All Shareholders that cannot attend in person, including those
viewing the live broadcast on the Investor Meet Company platform,
are encouraged to complete and submit their Form of Proxy or Form
of Direction in advance of the meeting to ensure that their votes
will count.
Outlook
Since the start of 2025 European markets have been impacted by
two primary factors: the threat of global trade tariffs from the new
US administration and the attempt to negotiate a rapid peace deal
in Ukraine.
Against this backdrop the “Magnificent Seven” and the technology
index in the US have retraced. European equities have performed
relatively much better. The European bourses have been led
by large cap stocks with the small and mid-cap universe of the
Company lagging.
The prospect of further interest rate cuts makes Europe more
attractive as an investment destination than the US, where
expansionary policies may boost inflation at least in the short term.
The underperformance of Europe over the last years relative to the
US does not reflect the better European macro environment. The
US Federal Reserve has been cautious about interest rate cuts
whilst the European Central Bank has a freer hand. Overall there
is much to say about Europe which is positive. Economic growth
may be low, but remains resilient, further interest rate reductions
should stimulate activity, and valuations are lower than elsewhere,
especially the US. As at February 2025, the MSCI Europe 12-month
forward P/E traded on a 33 per cent discount to the S&P 500.
In terms of the outlook for European corporate performance,
consensus expectations are for high single digit European earnings
growth, which is only marginally less than the expectations for US
average earnings growth. The Manager expects smaller companies’
earnings in Europe to match what is expected in large cap. The
market has begun to look forward to the attractive combination of
lower inflation leading to Central Bank easing, resilient economic
growth, and good corporate profitability. A rejuvenation in Europe,
prompted by economic growth, with the German government’s
plans acting as a key stimulus, should boost earnings. This should
be particularly helpful for smaller companies, which typically
have a greater exposure to their domestic markets. Following
three years of smaller company underperformance versus larger
companies, valuations look attractive. History would suggest that
these are good opportunities to buy into the long-term favourable
characteristics of smaller growth companies.
The Board is steadfast in prioritising Shareholders’ interests. We
expect the Manager to clearly demonstrate that the measures
taken over the past 18 months are translating into improved
investment performance against the Benchmark and peers. This
is coupled with the Board’s recognition of the Company’s longer-
term underperformance. With this in mind, and given the more
favourable outlook for Europe, the Board remains focused on
delivering performance for Shareholders and is alert to considering
all opportunities for the Company to achieve this.
Stuart Paterson
Chair
2 April 2025
10 | European Assets Trust PLC
Purpose and strategy
The purpose of the Company is to achieve growth of capital. A high
distribution policy has been adopted with dividends paid out of current
year revenue profits and the Distributable Reserve.
The strategy is to invest in quoted small and medium-sized companies
in Europe, excluding the United Kingdom.
Investment policy and principal guidelines
The investment policy seeks investments in quoted small and medium-
sized companies in Europe, excluding the United Kingdom, defined as
those with a market capitalisation below that of the largest company in
the MSCI Europe excluding United Kingdom Small Mid Cap (Net Return)
Index.
The Company will not invest more than 20 per cent of its total assets
in any one company and does not take legal or management control of
any company in which it invests.
The Company does not restrict its investments to any specific industrial
or geographical sector; a diversified geographical spread is maintained.
The Company does not seek to create a portfolio to take advantage of
anticipated currency fluctuations.
The Company has the ability to undertake stock lending activities
but does not anticipate doing so and would need to enter into a new
agreement with its custodian before commencing.
The Company has the powers under its Articles to borrow an amount
up to 20 per cent of its securities portfolio.
It is the intention of the Company barring unforeseen circumstances,
to pay an annual dividend equivalent to six per cent of the NAV of the
Company at the end of the preceding year.
Business model
The Directors have a duty to promote the success of the Company.
As an investment company with no employees, the Board believes
that the optimum basis for doing this and achieving the Company’s
objective, and strategy is a strong working relationship with the
Company’s appointed manager, Columbia Threadneedle Investment
Business Limited (the “Manager”). Within policies set and overseen
by the Board, the Manager has been given overall responsibility for the
management of the Company’s assets, asset allocation, gearing, stock
selection and risk.
As an Investment Trust, the Company is not constrained by asset
sales to meet redemptions and is well suited to investors seeking
longer term returns. The share capital structure provides the flexibility
to take a long-term view and stay invested while taking advantage of
illiquidity throughout normal and volatile market conditions. All the
Company’s investments are listed. Having the ability to borrow to invest
is a significant advantage over a number of other investment fund
structures.
The Board remains responsible for decisions over corporate strategy;
corporate governance; risk and internal control assessment; setting
policies as detailed on pages 24 and 25, setting limits on gearing and
asset allocation; monitoring investment performance; and monitoring
marketing performance.
Implementing the strategy
The investment management contract is with the Manager part of
Columbia Threadneedle Investments. The Manager has been
appointed as Alternative Investment Fund Manager (“AIF Manager”).
The ultimate parent company of Columbia Threadneedle Investments
is Ameriprise Financial, Inc., one of the leading US based financial
businesses with assets under management, administration and
advisement as at 31 December 2024 of $1.5 trillion.
Mine Tezgul is the lead portfolio manager appointed by the Manager
to the Company. She is assisted by Philip Dicken. Biographies of
Mine Tezgul and Philip Dicken are provided on page 13. Details of the
Manager’s approach are provided on pages 18 and 19.
The fee that the Manager receives for its services is based on the
value of assets under management of the Company, thus aligning its
interests with those of the Shareholders. The ancillary functions of
secretarial and marketing services are also provided by the Manager.
The Manager is also responsible for the provision of administration
Purpose, Strategy and Business Model
Report and Accounts 2024 | 11
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Strategic Report
to the Company for which a separate administration fee is charged.
Details of the management and administration fees payable to the
Manager are provided on page 41.
Environmental, Social and Governance (“ESG”) Impact
Our ESG policies are set out on pages 28 to 31. The direct impact of
our activities is minimal as the Company has no employees, premises,
physical assets or operations either as a producer or a provider of
goods or services. Its indirect impact occurs through the investments
that it makes and this is mitigated through Columbia Threadneedle
Investments responsible investment approach as explained on pages
28 to 31.
Manager evaluation
Investment performance and responsible ownership are fundamental
to delivering sustainable long-term growth in capital for the Company’s
Shareholders and therefore an important responsibility of the Board is
exercising a robust annual evaluation of the Manager’s performance.
This is conducted by the Management Engagement Committee of the
Board. This is an essential part of the strong governance that is carried
out by the Board, all the members of which are independent and non-
executive. The process for the evaluation for the year under review and
the basis on which the decision to reappoint the Manager for another
year are set out on page 53. As noted above, the management
fee is based on the value of assets under management of the
Company, thus fully aligning the Manager’s interests with those of
Shareholders.
Gearing strategy
The Company has the ability to borrow up to an amount of 20 per cent
of the value of its investment portfolio.
At 31 December 2024 the Company had drawn €35 million from
its maximum potential facility of €60 million with The Royal Bank of
Scotland International Limited, London Branch and held cash balances
of £12.5 million, resulting in net gearing of 5.0%.
Following the year end, the Company’s loan facility with The Royal Bank
of Scotland International Limited, London Branch was extended until
February 2026 on similar terms.
Liquidity management
The Company has share issuance and buy back authorities which are
designed to minimise the volatility of its share price relative to its Net
Asset Value (“NAV”).
Communication and marketing with key stakeholders
The Company fosters good working relationships with its key
stakeholders; Shareholders, suppliers, contractors and the manager.
The Company has no employees.
The Company’s activities and performance are reported through the
publication of its financial statements but the majority of Shareholders
and CT Savings Plan investors prefer not to receive such detailed
information. To avoid losing this essential line of communication,
the Company issues a short notification with the key highlights of its
half-yearly and annual results. The Company also issues a monthly
factsheet. All stakeholders can locate the full information on the
Company’s website, www.europeanassets.co.uk.
The Annual General Meeting (“AGM”) of the Company provides a forum,
both formal and informal for Shareholders to meet and discuss issues
with the Directors and Investment Managers. Through the Manager, the
Company also ensures that CT Savings Plan investors are encouraged
to attend and vote at annual general meetings in addition to those
who hold their shares on the main shareholder register. Details of the
proxy voting results on each resolution are published on the Company’s
website where there is also a link to the daily publication of the
Company’s NAV and its monthly factsheet.
The Manager also has in place a programme of meetings designed
to foster good relations with wealth managers and other institutional
investors in promoting the Company’s investment proposition. Feedback
from meetings is reported regularly to the Board. The Chair is available
to meet with major Shareholders.
Managing risks and opportunities
Like all businesses, investment opportunities come with risks and
uncertainties and so the performance of the Manager is monitored
at each board meeting. In addition to managing the Company’s
investments, the ancillary functions of administration, secretarial,
accounting and marketing services are all carried out by Columbia
Threadneedle Investments.
The Board receives reports on the investment portfolios; the wider
portfolio structure; risks; income and expense forecasts; internal control
procedures; marketing; shareholder and other stakeholder issues,
including the Company’s share price premium or discount to NAV; and
accounting and regulatory updates.
Shareholders can assess the financial performance of the Company
from the Key Performance Indicators that are set out on page 23.
The Board has undertaken a robust assessment of the principal and
emerging risks facing the Company. The Principal Risks that the Board
considers the Company faces are detailed on page 32.
The risk of not achieving the Company’s objective, or of consistently
underperforming the Benchmark or peer group, may arise from
any or all of inappropriate stock selection, asset allocation, poor market
conditions, ineffective or expensive gearing, poor cost control, loss of
assets and service provider governance issues. In addition to regularly
12 | European Assets Trust PLC
monitoring the Manager’s performance, their commitment and available
resources and their systems and controls, the Directors also review
the quality and value of services provided by other principal suppliers.
These include the Custodian and Depositary in their duties in respect
of the safeguarding of the assets.
The principal policies that support the strategy are set out on pages 24
and 25, whilst the Investment Manager’s review of activity in the year
can be found on pages 14 to 17.
Image: Milan, Italy
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Other Information
Chair’s StatementOverview Auditors’ Report
Investment Managers
Mine Tezgul, Lead Investment Manager
Mine is Head of Pan European Small
Cap Equities at Columbia Threadneedle
Investments. She manages the CT European
Smaller Companies strategy, and jointly
manages the CT Pan European Small Cap
Opportunities strategy. Mine joined the
Manager in 2018 and became a portfolio
manager in 2019. Prior to this, Mine was an
equity analyst focusing on developed market
equities, working at Lansdowne Partners,
SAC Global Investors and Highbridge Capital
Management. She started her career
with Citigroup as a financial analyst in its
investment banking division. She holds a
BA in Economics with General Honours from
the University of Chicago and an MBA with
Distinction from INSEAD.
Philip Dicken, Investment Manager
Philip joined the Manager in 2004 and has
managed the CT Pan European Smaller
Companies strategy since it was launched
in 2005, and jointly manages the CT Pan
European Small Cap Opportunities strategy.
He became Head of European Equities in
2012 and Head of International Equities
in 2022. He started his career with Merrill
Lynch as an analyst in the Corporate Finance
division and holds a first class degree
in Mechanical Engineering with study in
Continental Europe from Bristol University.
He holds the Chartered Financial Analyst
designation and is a member of the CFA
Society of the UK.
Mine Tezgul was appointed the Lead Investment Manager on 2 May 2024. Mine is assisted by Philip Dicken.
Previously Sam Cosh was the Lead Investment Manager assisted by Lucy Morris.
14 | European Assets Trust PLC
Market Background
2024 proved a positive year for European stock markets, although
the best returns were achieved by larger companies. Drivers included
falling inflation, anticipation of interest rate cuts, which were duly
implemented, and encouraging corporate earnings. The resilience of
the US economy caused doubts over the pace of monetary easing, and
geopolitics remained tense; political uncertainty within the eurozone
was a key theme.
The US started reducing interest rates in September 2024, with a cut
of 50 basis points in response to cooling inflation and concerns that
the economy would weaken. US stocks hit highs as Donald Trump’s
presidential victory paved the way for tax cuts and reduced regulation.
But these may be inflationary, so expectations for rate cuts in 2025
were dialled back.
Like the US Federal Reserve, the European Central Bank (“ECB”) began
the year calling for patience, citing concerns about services inflation
and wage growth. Subsequent progress on inflation, and worries about
economic softness, prompted a rate reduction in June 2024 followed
by three further cuts over the year. Inflation in the eurozone fell below
the target in September 2024 before ticking higher late in the year.
Eurozone economic data remained mixed. The composite Purchasing
Managers’ Index (“PMI”) escaped contraction territory in March 2024,
driven by growth in services. The gauge continued to indicate growth
until it slipped in September; expansion in services contrasted with a
decline in manufacturing. Soft economic data hurt sentiment but raised
hopes of monetary easing, and the ECB continued to strike a dovish
tone.
Politics caused bouts of volatility. President Macron called a French
parliamentary election, and a far-right victory was avoided, but Prime
Minister Barnier was ousted following a no-confidence vote. The
German government broke apart, and elections were held in February
“Following two years of underperformance for smaller companies against
the larger market, we think this is an excellent opportunity for the creation
of long-term returns.”
Investment Manager’s Review
Mine Tezgul, Lead Manager
2025 which will probably result in a coalition headed by Friedrich Merz,
of the CDU. Trump’s presidential victory and the threat of US tariffs
dampened sentiment toward European exporters.
Despite this confused backdrop, European markets ended the year
posting gains overall. However, due to limited risk appetite from investors
and the uncertain path of politics, economic growth and interest rates,
smaller companies lagged, as did growth-oriented stocks. This trend
was disappointing, as it was a continuation of the trends over 2022 and
2023 and contrasted with the strong historic performance from smaller
companies over longer time periods.
Performance
For the year ended 31 December 2024 the Company recorded a sterling
NAV total return of -0.8% (euro: +3.9%). This compares to the total return
of its Benchmark, which rose +2.4% (euro: +7.3%) during the same
period. The sterling return to Shareholders for the year was impacted
negatively by the euro’s weakness relative to sterling.
At the start of May, the management of the portfolio was transferred
to me, assisted by Philip Dicken. The combination of headwinds meant
that the Company’s total return lagged the Benchmark. The Company’s
quality- and growth-biased portfolio faced another year of value style
outperforming, though to a lesser extent than in the previous two years.
Stock decisions delivered some successes, whilst some positions were
more problematic. I will explain this in more detail later in my Review.
Macroeconomic factors continued to affect stock returns. This meant that
strong secular trends which provided a tailwind for smaller companies
and growth stocks have been less clear. The most important example of
this has been the long-term decline in interest rates. In sectoral terms the
portfolio was underweight financials and overweight technology relative to
the Benchmark. Both positions hindered relative returns, although stock
selection was the main driver of the underperformance.
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Other Information
Chair’s StatementOverview Auditors’ Report
Strong performers of note included our holdings in Cairn Homes
(+74.8%), Smurfit Westrock (+42.4%) Karnov (+67.0%) and CTS
Eventim (+26.7%). An overview of these holdings is provided below:
Cairn Homes, Consumer Discretionary, Ireland, £1.2 billion market cap,
4.0% of net assets at year end
The shortage of housing stock in Ireland continues, and this gives
Cairn Homes, as one of the largest suppliers, a source of demand
stretching out for the foreseeable future. This is increasingly reflected
in the company’s published guidance regarding future profitability.
The change in government in Ireland did not bring any change in the
key policy which is termed ‘Housing for All - a New Housing Plan for
Ireland’ and which provides a supportive framework for the sector, and
therefore for Cairn Homes’ business, until 2030.
Smurfit Westrock, Basic Materials, Ireland, £22.3 billion market cap,
3.6% of net assets at year end
Smurfit Westrock was a notable positive contributor over the year.
Towards the end of the year the paper and packaging firm released its
first quarterly results as a combined entity and expressed optimism
regarding its future prospects in sustainable packaging. The company
now has a large footprint in Europe and the US and stands to benefit
from merger efficiencies. This is a business and a sector which
was attractive even before the merger: when we bought the stock
it was called Smurfit Kappa, but the combination of Smurfit Kappa
with Westrock in the US gives the business a global footprint. This
brings synergy benefits, and the company is also now attracting
wider shareholder interest due to it is global operations and brand
recognition.
Karnov, Industrials, Sweden, £646 million market cap, 1.7% of net
assets at year end
Karnov is a Swedish provider of online legal information services. The
company received a bid at a 28% premium to the prevailing share
price from two private equity groups, although it was rejected by larger
shareholders and the private equity groups retreated. The share price
has held its position at the higher levels, as even though the bid failed, it
did so as shareholders believed the premium was not high enough. This
has led to a reappraisal of the value of the company by the market. We
sold some of the Company’s position profitably at these higher levels.
CTS Eventim, Consumer Discretionary, Germany, £6.5 billion market cap,
3.0% of net assets at year end
CTS Eventim performed well for us – it is a German business providing
an online platform for ticketing for concerts and events. It also
manages some major venues which provides a further boost to this
business. The company produced strong Q2 results, better than the
market expected, following a strong first quarter. At the same time,
management are merging two of their promotion businesses, Peter
Rigeer Konzertagentur and Dreamhaus, which will increase efficiency
and impact. They have now consolidated See Tickets, another
acquisition, reaffirming their successful M&A strategy. Success at
the Paris Olympics and Paralympics, where they were one of the lead
ticketing providers, has been followed up by signing the Los Angeles
Olympics in 2028. The recent Adele tour has also provided a useful
fillip. Q3 2024 results were less strong, partly as the equivalent period
last year was boosted by revenues from the Taylor Swift tour, but we
expect growth to pick up later.
Some portfolio holdings turned in more disappointing performances
over the year. Gerresheimer, the German manufacturer of syringes for
administering prescription drugs, warned that inventory problems would
depress profitability. This is likely to keep the shares under a cloud for
the foreseeable future, especially as competitors are voicing concerns
about the market too. The company had experienced a boom during the
pandemic as a consequence of demand for injectable vaccines. This
phase is now past. We carefully reassessed this holding and decided to
exit the investment.
Recent underperformance and volatility of European growth and
quality in comparison to European value stocks
Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 Jan 24 Jul 24
ValueGrowth
Source: Bloomberg, as at 31 December 2024. Style index price returns relative to the MSCI Europe Inde
x
-10
-8
-6
-4
-2
0
2
4
6
8
10
Quality
Longer term outperformance of European growth and quality in
comparison to European value stocks
Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 23Jan 19 Jan 20 Jan 21 Jan 22
ValueGrowth
Source: Bloomberg, as at 31 December 2024. Style index price returns relative to the MSCI Europe Inde
x
-60
-40
-20
0
20
40
60
Jan 24
Quality
16 | European Assets Trust PLC
Tecan, a Swiss-based laboratory automation business, was initially
affected by poor sector sentiment after a peer issued a profit warning.
Later the company themselves said they had seen market weakness
and order delays, and this prompted downgrades from analysts. Whilst
results early in the year were behind expectations, with demand proving
weaker than expected, we believe the second half is likely to have been
better. The comparable period last year saw weak Chinese demand,
giving the company a lower hurdle to beat. We are maintaining a holding
in Tecan but have reduced its size to reflect our lower level of optimism
about prospects for the company.
Stabilus, the German manufacturer of gas springs, dampers and
electromechanical drives cut its financial guidance owing to weakness
in the automotive and commercial vehicle markets, particularly in
premium cars which are heavy users of its products. We have sold the
position. Whilst the shares have been a poor performer, we fear that
the election of President Trump and rising tariffs, may cast a shadow
over the European automotive sector, to which Stabilus is inextricably
linked, for some time. Similarly we have sold the position in Melexis,
which provides integrated semiconductors for use in the automotive
industry. Weak trends in that industry will affect Melexis too.
Portfolio Activity
The change in portfolio manager has brought the Company’s access
to the full resources of Columbia Threadneedle Investments to a
higher level. The previous managers had already begun a process
of alignment of portfolio holdings with some of the idea generation
produced by this team. So while there was no wholesale revamp of
the portfolio during 2024, notable changes have been made which are
outlined below.
For some years the Company has held a position in Azimut, a specialist
Italian fund management business which has been developing a global
reach. The market in Italy has become more competitive requiring
greater digital investment, and Azimut is, in our view, not well placed to
benefit from these changes. Even though its reach is global, and it is
the largest independent operator in Italy, it lacks the scale to compete
effectively on the world stage. For this reason we sold the Company’s
position and have instead invested in Finecobank. Finecobank is a
larger business and offers not only a fund distribution platform, but
access to banking and other financial services online. Finecobank has
cost advantages over traditional Italian financial services firms which
have labour intensive client servicing offerings paid for by higher fees.
More cost sensitive clients perceive that they can access a cheaper
service from Finecobank, who are able, via their scale and reach, to
negotiate good fees with third party fund providers. Because of this, they
have been gaining market share rapidly, and their model is capital-light,
enabling high returns on capital.
Also in Italy, we have invested in cables business Prysmian. There are
two major elements to this business, and both have exciting prospects.
Firstly, the move to alternative energy entails a huge reinforcement and
expansion of the electricity supply grid. Windfarms, for example, are
often situated offshore or in relatively inaccessible places and need
extensive cabling to link them to the grid. This is a major specialisation
for Prysmian, who have a particular expertise in the most difficult
installations, where competition is less evident and margins higher. The
second part of Prysmian’s business is in data transmission cables; this
area is also growing faster with the spread of data centres and new
demand as digitisation, including AI, expands.
We bought a holding in Konecranes, the Finnish crane manufacturer,
which has since reported strong results, driven by good performance
across all business segments. Konecranes is involved not only in
cranes, but also in the wider business of port installation, where it
has gained market share as many western clients are unwilling to use
their Chinese competitors. Konecranes does have a major western
competitor, Cargotec, but Cargotec is undergoing a major restructuring
which potentially places them at a disadvantage owing to the distractions
involved.
During the year we sold Dalata Hotels. Whilst a well-managed business,
the VAT rise in Ireland and cost inflation due to higher wages are likely
Portfolio Split by Sector at 31 December 2024
Industrials 34.7% (2023: 30.1%)
Financials 16.7% (2023: 12.3%)
Consumer Discretionary 14.0% (2023: 13.6%)
Technology 10.3% (2023: 11.7%)
Basic Materials 9.7% (2023: 7.2%)
Consumer Staples 8.7% (2023: 9.3%)
Health Care 4.0% (2023: 9.4%)
Telecommunications 1.9% (2023: 1.4%)
Energy 0.0% (2023: 2.8%)
Real Estate 0.0% (2023: 2.2%)
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Other Information
Chair’s StatementOverview Auditors’ Report
Sector attribution for the year ended 31 December 2024
%
Total return - NAV -0.8
Benchmark Return 2.4
Underperformance -3.2
Composed of
Sector allocation effect -0.8
Stock selection effect -0.6
Currency effect -0.3
Expenses
Ongoing charges -1.0
Interest -0.4
Taxation -0.2
-1.6
Gearing 0.1
-3.2
Source: FactSet, Columbia Threadneedle Investments
to result in pressure on margins, EBITDA and customer demand. The
recently announced strategic review may bring some benefits, but we
believe investors’ patience has worn thin.
Outlook
After a long period of low inflation and interest rates, markets have
been dominated by macroeconomic factors.
Central banks underestimated the inflation problem and had to raise
interest rates. Tighter monetary policy took effect and inflation fell. After
these falls in inflation, the interest-rate environment in Europe looks
benign, more so than in the United States. The ECB and the Federal
Reserve have started easing monetary policy and further interest-rate
cuts are anticipated so a recession can be avoided. Bond yields have
risen; but in Europe this is more because of domestic politics rather
than inflation worries. Global geopolitical conflicts and tensions are a
concern, as is political uncertainty in France and Germany.
In the United States, President Trump’s majority in Congress should
enable him to push through policies on immigration, taxation, energy
prices, trade tariffs and global conflicts. All of these have an element
of unpredictability as we expect President Trump to make deals with
countries and sectors to cement his legacy. In European equities, there
are reasons to remain optimistic. Company valuations have been reset
due to higher interest rates and, over the longer term, share prices tend
to follow earnings. As a result, good companies can continue to grow,
and their lower valuations have created opportunities in the current
climate. The impact of tariffs may be more muted than expected on
both European businesses and on inflation.
In managing the Company, our focus is on stock selection, informed
by economic and thematic views. However, the backdrop has been
unhelpful, and we will continue to carefully adjust the portfolio to reflect
the economic environment.
The portfolio is positioned for sustainable, secular growth and, following
underperformance, is more attractively valued in both absolute terms
and relative to the index.
We prefer companies that have a competitive advantage and pricing
power generated by brands, patented processes, regulatory barriers
to entry and strong market positions. All of this applies to European
companies and is in line with our philosophy and approach but is
perhaps even more apparent in small and mid-sized quality growth
companies, which have been out of favour for some years.
Mine Tezgul
Lead Investment Manager
Columbia Threadneedle Investment Business Limited
2 April 2025
Geographic attribution* for the year ended 31 December 2024
%
Total return - NAV -0.8
Benchmark Return 2.4
Underperformance -3.2
Composed of
Geographic allocation effect 1.3
Stock selection effect -2.7
Currency effect -0.3
Expenses
Ongoing charges -1.0
Interest -0.4
Taxation -0.2
-1.6
Gearing 0.1
-3.2
Source: FactSet, Columbia Threadneedle Investments
*The Manager does not construct the portfolio with reference to geographic attribution.
18 | European Assets Trust PLC
Investment Manager’s Investment
Philosophy and Process
Investment philosophy
The team seeks long-term growth of capital through active
investment in small, high-quality companies with an orientation
towards growth. Our philosophy is best summarised as follows:
• To mitigate stock-specific risk, a focus on high-quality companies
is key;
• We measure quality by judging the business model, specifically
assessing competitive advantage which enables sustainable high
returns and growth;
• We use the five forces model from Professor Michael Porter of
Harvard Business School to assess pricing power;
• Individual stock selection is paramount, but portfolios are
constructed in line with macroeconomic, sector and thematic
views; and
• We analyse and manage risk at stock, sector and portfolio levels.
Investment process
Our investment process has four parts: idea generation, research
and debate, implementation and monitoring. Assessments of ESG
performance and risk management is key to all four parts.
Idea generation
The team has a stock-picking approach, driving asset allocation and
geographic weightings. We buy exceptional companies with strong
business models and economic moats that mitigate competitive
pressures.
Our approach is based on our belief that companies that can
compound high returns over an enduring period tend to be
undervalued by the market. We want to invest in these high-quality
companies, or those that have the business models that will meet
these quality characteristics in the future.
While we do not necessarily target specific sectors, our philosophy
will naturally lead us towards certain areas or themes where long
term growth of superior cash flow is more likely. This will result in a
portfolio that is significantly differentiated against the Benchmark.
Management teams of smaller companies have a huge role to
play in the evolution of their businesses. How they are motivated,
rewarded, and allocate capital is crucial in a company’s development.
The portfolio risk management process includes an effort to monitor and manage risk but does not imply low risk.
Idea generation
Implementation Research and debate
Monitoring
Macroeconomics
and themes
Company meetings
Portfolio
construction
Risk
management
Stock analysis
Investment factors
ESG factors
Monitoring
Voting
Engagement
European equity team
Other investment teams
Investment process
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Chair’s StatementOverview Auditors’ Report
We want to invest alongside strong management teams, who we trust
to make good long-term decisions and are rewarded for doing so.
This feature of our approach makes us focus on assessing corporate
governance as a key criterion for all investment decisions.
While we believe the evolution of a company’s profits and cash
generation will be the principal determinant of shareholder returns,
we also believe the price that you pay is important. Valuation
discipline is crucial to long-term returns and often requires patience.
Ultimately this approach should lead to a portfolio of quality smaller
companies with the following characteristics:
• Proven business models that are defended by scale, intellectual
property, brand or market positions;
• Pricing power in the operation of that business model, which we
measure and assess using the Porter’s Five Forces model shown
below;
• Management teams that have the right balance of entrepreneurial
flair and rational capital allocation, who are incentivised
appropriately;
• Higher growth rates, margins and returns on capital than the
market; and
• Superior cash flow generation and strong balance sheets that
provide stability and opportunity for value added deployment.
The fact that we boast one of the larger smaller company investment
teams focused on Europe enables extensive in-house research which
is available to our portfolio managers. Portfolio managers consider
colleagues’ recommendations on the market and thematic ideas.
Differences of opinion are debated to reach conclusions.
Sell discipline
Alongside a constant reassessment of positions is a robust sell
discipline. In general, we sell if:
• the investment thesis is undermined by a change in
circumstances or in company strategy/management;
• there is a more attractive idea elsewhere;
• the stock approaches or reaches its price target; and
• risk factors change at the stock or portfolio level.
Risk management is a key part of our approach, and we have
extensive systems, data and resource at Columbia Threadneedle
Investments to facilitate this. Our risk team operates independently
of investment teams and this fosters independent thought and
oversight. We assess risk at a stock level, but also at a portfolio
level, in absolute terms as well as relative to the Benchmark.
We believe this approach gives us the best chance of delivering
attractive long term returns for our Shareholders.
Mine Tezgul
Lead Investment Manager
Columbia Threadneedle Investment Business Limited
2 April 2025
Source: Columbia Threadneedle Investments, Morningstar, Harvard Business School (Professor Michael Porter).
Value grows as
more people use it
Understanding industry structure
Identifying competitive advantage
Threat of
substitutes
Industry
rivalry
Power of
suppliers
Power of
customers
Threat of new
entrants
Efficient scale
One or two
dominant companies
Cost advantage
-
cost producer
Intangible assets
Brands or patents
create barriers to
entry
Switching costs
Costs incurred through change
Competitive
Advantage
Lowest
Network effect
Idea generation
20 | European Assets Trust PLC
Note: Number in brackets is the position held in the portfolio as at 31 December 2023
Ten Largest Holdings as at 31 December 2024
1. Cairn Homes (6)
Ireland/Consumer Discretionary
Cairn is the leading Irish housebuilder. They built up an unrivalled
landbank after the financial crisis that has enabled them to be the only
supplier of significant volume in a market that has a serious demand/
supply imbalance. With little need for further material investment in land
cash generation is excellent and capital returns to shareholders will be
generous.
4.0% of net assets £13,078,876 value
www.cairnhomes.com
2. Smurfit Westrock (London Listing) (New)
Ireland/Basic Materials
Smurfit Westrock is the result of the merger of Smurfit Kappa with
Westrock. The original Smurfit was an attractive leading supplier of
specialist bespoke packaging, but the combination with Westrock enables
synergy benefits and the advantages of a global reach.
3.7% of net assets £12,195,343 value
www.smurfitwestrock.com
3. Ringkjoebing Landbobank (1)
Denmark/Financials
High-quality regional Danish bank with a loyal customer base, low loan
losses and strong returns on equity. They have a dominant position in
their region, and have been growing outside of this as they take advantage
of lower quality competitors.
3.0% of net assets £10,081,041 value
www.landbobanken.dk
4. Accelleron Industries (27)
Switzerland/Industrials
Accelleron manufactures turbochargers and offers servicing, where their
network gives them an advantage. Turbochargers enable greater fuel
efficiency and engine sizes can be reduced for the same power output.
Accelleron leads in the off-highway market, which is lower-volume, but
more customised solutions encourage stickier and higher margin clients.
Growth will come from decarbonisation and digitisation to improve control
and monitoring.
3.0% of net assets £9,897,545 value
www.accelleron-industries.com
5. CTS Eventim (7)
Germany/Consumer Discretionary
Europe’s leading provider of online ticketing solutions and event organiser,
pioneering the digitalisation of live entertainment. The shift from paper
to electronic ticketing has provided a tailwind for growth but this has now
been complemented by live entertainment as musicians increasingly
generate income from touring.
3.0% of net assets £9,832,580 value
www.eventim.de
6. Vidrala (9)
Spain/Industrials
Glass bottle manufacturer supplying products across Iberia and the UK to
beverage, food and cosmetic companies. Large market shares allow them
to benefit from economies of scale and generate industry leading margins
and returns. The high capital requirement of building a new furnace and the
inefficiency of transporting glass large distances make the entrance of new
competition unlikely. End markets demonstrate steady and stable growth.
2.8% of net assets £9,316,728 value
www.vidrala.com
7. Interpump (2)
Italy/Industrials
Manufacturer of ultra high pressure pumps used for fluid movement and
hydraulic components installed on vocational trucks and other machinery.
Proven resilient operator as a result of diverse end markets and high
quality product, highly cash generative and excellent capital allocation
record.
2.8% of net assets £9,141,880 value
www.interpumpgroup.it
8. Storebrand (24)
Norway/Financials
Storebrand specialises mainly in life assurance. The company has few
direct competitors in the Norwegian market, which means business
remains sticky without the need for costly advertising. This promotes a
stable business model with sustainable and predictable future returns and
earnings potential.
2.7% of net assets £8,855,508 value
www.storebrand.no
9. Siegfried (5)
Switzerland/Health Care
Leading CDMO (contract development and manufacturing organisation)
for small molecules used as ingredients in drug production and drug
products such as aseptic fill-and-finish syringes. Pharmaceutical companies
are increasingly outsourcing production to companies such as Siegfried
providing a tailwind of growth.
2.6% of net assets £8,739,445 value
www.siegfried.ch
10. Fluidra (26)
Spain/Industrials
Fluidra is Europe’s leading supplier of products needed for constructing
and maintaining swimming pools - both public pools and those at private
residences. Their scale and product breadth give buying power and
one-stop-shop advantages for maintenance engineers and constructors.
Swimming pool usage is increasing with demographic trends with ageing
populations more likely to install pools as a retirement perk.
2.6% of net assets £8,612,059 value
www.fluidra.com
Report and Accounts 2024 | 21
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Other Information
Chair’s StatementOverview Auditors’ Report
Investment Portfolio as at 31 December 2024
Company Nature of Business Sector
Country of
Incorporation
Valuation
£'000s
% of Net
Assets
Cairn Homes House Builder Consumer Discretionary Ireland 13,079 4.0%
Smurfit Westrock (London
Listing)
Paper Packaging Manufacturer Basic Materials Ireland 12,195 3.7%
Ringkjoebing Landbobank Regional Banking Financials Denmark 10,081 3.0%
Accelleron Industries Market Leader of High Powered Turbo Chargers Industrials Switzerland 9,898 3.0%
CTS Eventim Concerts and Ticketing Consumer Discretionary Germany 9,833 3.0%
Vidrala Manufacturer and Supplier of Glass Containers Industrials Spain 9,317 2.8%
Interpump Industrial Producer of Fluid Movement Pumps and Hydraulic
Components
Industrials Italy 9,142 2.8%
Storebrand Long-term Savings and Insurance Financials Norway 8,856 2.7%
Siegfried Contract Development Manufacturing Organisation Health Care Switzerland 8,739 2.6%
Fluidra Swimming Pool Equipment and Maintenance Industrials Spain 8,612 2.6%
Ten largest investments 99,752 30.2%
Nordnet Scandinavian Savings Platform Financials Sweden 7,796 2.4%
FinecoBank Italian Bank Specialising in Online Brokerage Financials Italy 7,751 2.3%
Bank of Ireland National Bank Operating in a Consolidated Market Financials Ireland 7,596 2.3%
Kardex Intralogistics Solutions and Automated Storage Provider Industrials Switzerland 7,535 2.3%
ASM International Semiconductor Equipment Technology Netherlands 7,522 2.3%
Prysmian Manufacturer of Energy and Telecom Cable Systems Industrials Italy 7,219 2.2%
IMCD Speciality Chemical Distributor Basic Materials Netherlands 7,072 2.1%
Royal Unibrew Nordic and Baltic Beverage Producer Consumer Staples Denmark 7,001 2.1%
SIG Group Systems and Consumables Provider for Aseptic Packaging Industrials Switzerland 6,790 2.0%
Rational Specialist in Hot Food Preparation for Professionals Industrials Germany 6,690 2.0%
Twenty largest investments 172,724 52.2%
CVC Capital Partners Private Equity and Investment Advisory Financials Jersey 6,622 2.0%
Koninklijke Leading Dutch Telecommunication Provider Telecommunications Netherlands 6,484 2.0%
Konecranes Specialist in the Manufacture and Service of Cranes and
Lifting Equipment
Industrials Finland 6,465 2.0%
Symrise Speciality Chemicals Basic Materials Germany 6,465 2.0%
Atea Value Added IT Hardware and Software Reseller Technology Norway 6,450 2.0%
Thule Outdoor and Transportation Product Manufacturer Consumer Discretionary Sweden 6,367 1.9%
Indutrade Niche Industrial Conglomerate Industrials Sweden 6,122 1.8%
Lectra Provider to the Fashion, Automotive and Furniture Industries Technology France 5,742 1.7%
Hexpol Chemical Compounder Basic Materials Sweden 5,742 1.7%
Viscofan Artificial Casings for Meat Products Consumer Staples Spain 5,734 1.7%
Thirty largest investments 234,917 71.0%
22 | European Assets Trust PLC
Company Nature of Business Sector
Country of
Incorporation
Valuation
£'000s
% of Net
Assets
Kerry Group Sustainable Nutrition Solutions Consumer Staples Ireland 5,609 1.7%
Avanza Bank Swedish Savings and Investment Platform Financials Sweden 5,501 1.7%
Karnov Group Mission Critical Information Provider to the Legal Industry Industrials Sweden 5,495 1.7%
Publicis Groupe Marketing and Digital Transformation Business Consumer Discretionary France 5,432 1.6%
Elis European Market Leader in the Textile Rental Industry Industrials France 5,361 1.6%
Rheinmetall Integrated Technology Group for the Security and Civil
Industries
Industrials Germany 5,340 1.6%
Engcon Tiltrotator Manufacturer Industrials Sweden 5,271 1.6%
Moncler Luxury Italian Fashion Brand Consumer Discretionary Italy 4,586 1.4%
Glanbia Global Nutrition Company Consumer Staples Ireland 4,456 1.3%
Baltic Classifieds Group Automotive, Real Estate and Generalist Classifieds Business Technology Lithuania 4,289 1.3%
Forty largest investments 286,257 86.5%
Lotus Bakeries Indulgent and Natural Snack Manufacturer Consumer Staples Belgium 3,987 1.2%
Carel Industries Producer of Control Solutions for Air Conditioning and
Refrigeration
Industrials Italy 3,831 1.2%
Planisware Developer of Enterprise Project Portfolio Management
Applications
Technology France 3,831 1.2%
Reply Consulting, System Integration and Digital Services Technology Italy 3,811 1.2%
Inficon Producer of Vacuum and Precision Control Components and
Equipment
Industrials Switzerland 3,591 1.1%
BE Semiconductor
Industries
Producer of Semiconductor Assembly Products Technology Netherlands 3,544 1.1%
Burckhardt Compression Global Manufacturer of Reciprocating Compressor
Technologies and Services
Industrials Switzerland 3,540 1.1%
Sodexo Food Services and Facilities Management Consumer Discretionary France 3,535 1.1%
Belimo Manufacturer of Actuator Solutions Industrials Switzerland 3,528 1.1%
Bureau Veritas World Leader in Testing, Inspection and Certification Services Industrials France 3,508 1.1%
Fifty largest investments 322,963 97.9%
Tecan Automated Laboratory Instruments and Solutions Health Care Switzerland 3,479 1.0%
Tr yg Insurance Company Financials Denmark 3,366 1.0%
Davide Campari Milano Branded Drinks Producer Consumer Staples Netherlands 3,187 1.0%
Tomra Systems Manufacturer of Reverse Vending Bottling Machines and
Sorting Equipment
Industrials Norway 2,276 0.7%
Springer Nature Research Publishing Service Consumer Discretionary Germany 1,992 0.6%
Intercos Cosmetics Manufacturer Consumer Discretionary Italy 1,806 0.5%
Fuchs Lubricants Manufacturer Basic Materials Germany 1,750 0.5%
Virbac Veterinary and Pet Care Solutions Provider Health Care France 1,676 0.5%
DO & Co Provider of High-Class Gourmet Entertainment Consumer Discretionary Austria 1,578 0.5%
Technoprobe Producer of Semiconductor Probe Cards Technology Italy 409 0.1%
Sixty largest investments 344,482 104.3%
Argan REIT French Logistics Real Estate Owner and Developer Real Estate France 163 0.0%
Stabilus Auto and Industrial Component Manufacturer Industrials Germany 79 0.0%
Total investments 344,724 104.3%
Net current liabilities (14,115) (4.3%)
Net assets 330,609 100.0%
Report and Accounts 2024 | 23
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Other Information
Chair’s StatementOverview Auditors’ Report
Net Asset Value per share sterling total return performance at 31 December 2024
1 Year % 3 Years % 5 Years % 10 Years %
European Assets Trust* (0.8) (22.9) 9.3 75.8
Benchmark Index
(1)
2.4 (7.5) 26.3 137.1
Source: Columbia Threadneedle Investments and Refinitiv Eikon
Share price sterling total return performance at 31 December 2024
1 Year % 3 Years % 5 Years % 10 Years %
European Assets Trust* (3.6) (27.8) 4.3 59.0
Benchmark Index
(1)
2.4 (7.5) 26.3 137.1
Source: Columbia Threadneedle Investments and Refinitiv Eikon
Average discount
*
For the year ended 31 December %
2024 (11.7)
2023 (8.4)
2022 (5.2)
2021 (6.7)
2020 (10.0)
Source: Columbia Threadneedle Investments
Shares issued during the year ended 31 December
2024 –
2023 –
2022 –
2021 –
2020 134,573
Source: Columbia Threadneedle Investments
Ongoing charges as at 31 December
*
%
2024 1.01
2023 1.04
2022 1.03
2021 0.89
2020 0.95
Source: Columbia Threadneedle Investments
Key Performance Indicators
The Board recognises that it is longer term share price performance that
is most important to the Company’s investors. Share price performance
is driven by the performance of the underlying Net Asset Value. The
overriding priority is to continue to strive for the consistent achievement
of outperformance in comparison to the Benchmark. The Board
assesses its performance in meeting the Company’s objective against
the following key performance indicators (“KPIs”):
1. Net Asset Value per share total return in comparison to the
Benchmark
2. Share Price total return in comparison to the Benchmark
3. Premium/(discount) to Net Asset Value
4. Ongoing charges
5. Shares issued/(bought back)
Information in relation to these KPIs is set out in the tables below.
Commentary can be found in the Chairman’s Statement and the
Investment Manager’s Review.
(1) At 1 April 2021 the Benchmark changed from EMIX Smaller European Companies (ex UK)
Index (gross) to EMIX Smaller European Companies (ex UK) Index (net). With effect from 1
June 2023 the Benchmark changed from EMIX Smaller European Companies (ex UK) Index
(net) to MSCI Europe excluding United Kingdom Small Mid Cap (Net Return) Index. A time
apportioned composite of each indices has therefore been calculated and disclosed.
* See Alternative Performance Measures on pages 91 and 92 for explanation
24 | European Assets Trust PLC
Investment
The Company is required to have a publicly available investment policy
from which Shareholders, prospective investors and stakeholders can
understand the scope of its investment remit and constraints. Any
material changes to this policy can only be made with the approval of
Shareholders and the Financial Conduct Authority (“FCA”).
Details of the investment policy are provided on page 10.
In the event of a breach of the Company’s investment policy, the
Manager shall promptly inform the Board and if the Board
considers the breach to be material, notification will be made by a
regulatory information service to the London Stock Exchange.
Dividends
The level of dividend paid by the Company each year is determined by
the Board in accordance with the Company’s distribution policy. It is the
intention of the Company, barring unforeseen circumstances, to pay an
annual dividend equivalent to six per cent of the NAV of the Company
at the end of the preceding year. The Company expects to pay the
dividend in four equal instalments in January, April, July and October
each year.
The Company will pay dividends on the shares only to the extent that
it has distributable reserves available for that purpose. Dividends are
funded from current year revenue profits and the Distributable Reserve.
As at 31 December 2024, the value of this reserve was £266.8
million. This is in comparison to the 2024 dividend cost of £21.2
million.
The Board is mindful that many Shareholders reinvest their dividends
through schemes operated by savings plans and platforms.
Borrowings
The Company’s borrowings shall not (without the sanction of a general
meeting of the Company) exceed an amount equal to the aggregate of
20% of the book value of its securities portfolio and its subsidiaries,
if any.
Principal Policies
Currency hedging
Due to its investment focus on investing in companies in Europe, the
Company’s investments can be denominated and quoted in currencies
other than euro. The Company does not seek to create a portfolio to
take advantage of anticipated currency fluctuations and has no current
intention of seeking to hedge any currency exposure which may arise
from investing in non-euro denominated investments.
The Board declares dividends in sterling. This provides certainty of
income for the overwhelming majority of the Company’s Shareholders
who choose to receive their dividends in sterling rather than euros. To
attempt to manage any sterling/euro exchange rate exposure which
may arise from the currency of the dividend, the Company has entered
into forward currency hedging contracts to cover this specific exposure.
Taxation
The Board’s policy towards taxation is one of full commitment to
complying with applicable legislation and statutory guidelines. It is
essential that the Company always retains its investment trust tax
status by complying with Section 1158 of the Corporation Tax Act
2010 (“Section 1158”) such that it does not suffer UK Corporation
Tax on capital gains. The Company has received approval from HMRC
as an investment trust under Section 1158 and has since continued
to comply with the eligibility conditions. The Manager also ensures
that the Company submits correct taxation returns annually to HMRC;
settles promptly any taxation due; and claims back, where possible,
all taxes suffered in excess of taxation treaty rates on non-UK dividend
receipts.
Liquidity
The Board recognises the need to address any sustained and
significant imbalance of buyers and sellers which might otherwise lead
to shares trading at a material discount or premium to NAV per share.
While it has not adopted any formal discount or premium targets which
would dictate the point at which the Company would seek to purchase
shares or issue further shares, the Board is committed to utilising
its share purchase and share issuance authorities where appropriate
in such a way as to mitigate the effects of any such imbalance. In
considering whether buyback or issuance might be appropriate in any
particular set of circumstances, the Board will take into account: the
prevailing market conditions; the degree of NAV accretion that will result
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Chair’s StatementOverview Auditors’ Report
from the buyback or issuance; the cash resources readily available to
the Company; the immediate pipeline of investment opportunities open
to the Company; and the working capital requirements of the Company.
Board diversity
The Board’s policy towards the appointment of non-executive Directors
is based on its belief in the benefits of having a diverse range of
experience, skills, length of service and backgrounds, including gender.
The Board’s policy is always to appoint the best person for the job
and, by way of this policy statement it is confirmed that there will be
no discrimination on the grounds of gender, ethnicity, socio-economic
background, religion, sexual orientation, age or physical ability.
The overriding aim of the appointment policy is to ensure that the
Board is composed of the best combination of people to deliver the
Company’s objective. The policy is applied for the purpose of appointing
individuals that, together as a Board, will continue to achieve that aim
as well as ensuring optimal promotion of the Company’s investment
proposition in the marketplace.
In accordance with Listing Rule 9.8.6R (9), (10) and (11) the Board has
provided the following information in relation to its diversity.
Board Gender as at 31 December 2024
(1)
Number of Board
Members
Percentage of
the Board
(2)
Number of
senior positions
on the Board
(3)
Men 3 60% 1
Women 2 40% 1
(1) The Company has opted not to disclose against the number of Directors in executive
management as this is not applicable for an investment trust.
(2) The Listing Rule 9.8.6R (9)(a)(i) target is 40% women.
(3) Composed of the Chair and the Senior Independent Director in accordance with Listing
Rule 986R (9)(a)(ii).
Board Ethnic Background as at 31 December 2024
(1)
Number of Board
Members
(2)
Percentage of
the Board
Number of
senior positions
on the Board
(3)
White British
or other white
(including
minority-white
groups
4 80% 2
Asian/Asian
British
1 20% –
(1) The Company has opted not to disclose against the number of Directors in executive
management as this is not applicable for an investment trust.
(2) The Listing Rule 9.8.6R (9)(a)(iii) target is one individual from a minority ethnic
background.
(3) Composed of the Chair and the Senior Independent Director.
The information included in the above tables has been obtained
following confirmation from the individual Directors. The Board will
continue to take diversity into account as part of its succession
planning and recruitment process.
Integrity and business ethics
The Company applies a strict anti-bribery and anti-corruption policy
insofar as it applies to any directors or employee of the Manager and of
any other organisation with which it conducts business. The Board also
ensures that adequate procedures are in place and followed in respect
of third-party appointments, acceptance of gifts and hospitality and
similar matters.
Modern Slavery Act 2015
The Company is an investment company with no employees or
customers and does not provide goods or services in the normal
course of business. The Company has appointed the Manager to
manage the investments, engage on ESG issues and to carry out
administrative and secretarial services.
The Company’s own supply chain consists predominately of
professional advisers and service providers in the financial services
industry, which is highly regulated. The Board therefore believes that
the potential for acts of modern slavery or human trafficking in the
Company’s own environment is extremely low.
UK Financial Sanctions and Prevention of the Facilitation
of Tax Evasion
The Board is fully committed to complying with all legislation, regulation
and relevant guidelines including those relating to the UK financial
sanctions regime in the context of the Company’s business and also
the UK’s Criminal Finances Act 2017, designed to prevent tax evasion
and the facilitation of tax evasion in the jurisdictions in which the
Company operates. Professional advice is sought as and when deemed
necessary.
On behalf of the Board
Stuart Paterson
Chair
2 April 2025
26 | European Assets Trust PLC
Under Section 172 of the Companies Act 2006, the Directors have a
duty to act in a way they consider, in good faith, would be most likely to
promote the success of the Company for the benefit of its members as
a whole, and in doing so, have regard, amongst other matters, to:
• the likely consequences of any decision in the long term;
• the interests of the Company’s Shareholders;
• the need to foster the Company’s business relationships with
suppliers, customers and others;
• the impact of the Company’s operations on the community and
environment;
• the desirability of the Company maintaining a reputation for high
standards of business conduct; and
• the need to act fairly as between members of the Company.
The Stakeholders of the Company
As explained on page 10, the Company is an externally managed
investment company and has no employees, customers or premises.
The key stakeholders are the Shareholders, the Manager, suppliers and
service providers.
The Board believes that the optimum basis for meeting its duty to
promote the success of the Company is by appointing and managing
third parties with the requisite performance records, resources,
infrastructure, experience and control environments to deliver the
services required to achieve the investment objective and successfully
operate the Company. By developing strong and constructive working
relationships with these parties, the Board seeks to ensure high
standards of business conduct are adhered to at all times and service
levels are enhanced whenever possible. This combined with the careful
management of costs is for the benefit of all Shareholders who are
also key stakeholders.
Engagement with Shareholders
The Directors value engagement with Shareholders. The Company’s
website www.europeanassets.co.uk is available to all Shareholders and
key decisions are announced to the London Stock Exchange through a
Regulatory News Service.
The Company holds an Annual General Meeting. The Shareholders are
invited to attend, and this provides an open forum for them to discuss
issues and matters of concern with the Board and representatives of
the Manager and the Company’s advisors.
The Manager also engages with the Company’s larger Shareholders
and the outcome of these discussions are reported to the Board at
the following Board Meeting. Shareholders are invited to communicate
with the Board through the Chair or Company Secretary. They can be
contacted at the Company’s registered office address detailed on
page 36.
Manager and Service Providers
The Company’s primary working relationship is with the Manager.
The portfolio activities undertaken by the Manager and the impact of
decisions taken are set out in the Investment Manager’s Review on
pages 14 to 17. On pages 28 to 31 information is provided on the
Company’s approach towards responsible investment. The Directors
are supportive of the Manager’s approach, which includes engagement
with the investee companies on ESG issues. Further information on the
annual evaluation of the Manager, to ensure its continued appointment
remains in the best interests of Shareholders, is set out on page 53.
Service providers such as, JPMorgan Chase Bank (“the Bank and the
Custodian”), JPMorgan Europe Limited (“the Depositary”), Panmure
Liberum (“the Broker”), The Royal Bank of Scotland International
Limited, London Branch (“the Lender”) and Computershare Investor
Services PLC (“the Registrar”) are also considered key stakeholders.
The Board receives regular reports from them and evaluates them to
ensure expectations on service delivery are met.
2024 – Key Board Decisions
The Company’s Stakeholders are always considered when the Board
makes decisions and key examples this year include:
Dividends
The Board is aware that dividend income is important to Shareholders.
A high distribution policy has been adopted with a stated aim to pay
Shareholders a dividend of 6% based on the NAV on 31 December of
the prior year.
Despite the effects of the war in Ukraine, events in the Middle East,
and the threat of US trade tariffs, the Directors have been able to
Promoting the Success of the Company
– Section 172 Statement
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maintain the Company’s high distribution policy as the dividend can be
funded from current year revenue profits and the Distributable Reserve.
The Distributable Reserve, which had a value of £266.8 million as at
31 December 2024 was created during the migration of the Company
from the Netherlands to the United Kingdom. In comparison to the
value of this reserve, the cost of the 2024 dividend was £21.2 million.
Investment performance
The Board monitors closely the investment performance of the
Company in comparison to both its Benchmark and its peers. Details of
the Net Asset Value per share sterling total return and the sterling total
return of the Benchmark Index are provided with the Key Performance
Indicators disclosed on page 23.
On 2 May 2024, the Board announced that following the further
integration of the European equities team by the Manager, Mine Tezgul
would succeed Sam Cosh as the Company’s Lead Investment Manager.
Mine is a portfolio manager in the European equities team and Head of
Pan European Small Cap Equities. Mine is supported by Philip Dicken,
Head of European Equities and Head of International Equities at the
Manager.
During the second half of the year, the Chair and Senior Independent
Director met with large Shareholders to discuss performance and the
recent change to the investment management team.
Management fee
An important responsibility of the Management Engagement Committee
is the review of the Manager’s fee. On 2 May 2024 the Board
announced an amendment to the basis of calculation of the investment
management fee payable to the Manager.
Previously, the Manager received a fee equal to 0.75% per annum of
the value of funds under management up to €400 million, and in cases
where the value of funds under management exceeded €400 million,
the applicable rate over such excess value was 0.6% per annum.
Following the amendment, which was backdated to 1 January 2024,
the funds under management to which the applicable rate of 0.75%
is applied was lowered from €400 million to €300 million. For funds
under management in excess of €300 million, the applicable rate was
reduced from 0.60% to 0.55% per annum. The basis of calculation for
funds under management remains unchanged.
Share issuance and buy-backs
Ensuring that liquidity is maintained for the Company’s shares is
important to Shareholders. The Directors sought and received the
authority from Shareholders at the 2024 AGM the power to issue and
buyback shares. At each Board Meeting the Directors will consider
the current level and direction of the discount that the Company’s
share price trades to its NAV and also those of its peer group.
Representatives of the Company’s broker, Panmure Liberum, will attend
most Board meetings and provide an update on the demand for the
Company’s shares. During the year ended 31 December 2024 the
Company did not buyback or issue shares. The discount as at
31 December 2024 was 12.0% (2023: 8.8%).
Board succession planning
The Board has an agreed succession plan for the orderly retirement
of existing Directors and to provide for the regular refreshment of
skills and talent. Regular retirements of Directors will take place in the
following years to ensure the Board enjoys the right balance of both
continuity and the regular refreshment of talent as well as compliance
with the requirements of the AIC Code.
As a part of this plan, Julia Bond retired from the Board on 31 January
2024 having served nine years. Following the retirement of Julia Bond,
Kate Cornish-Bowden was appointed Senior Independent Director and
Chair of the Remuneration and Nomination Committee.
Jack Perry was appointed in April 2014 and became Chair with effect
from April 2015. In accordance with corporate governance best
practice, and to allow a handover period, Jack Perry retired from the
Board at the conclusion of the Company’s AGM held on 17 May 2024.
Upon his retirement Stuart Paterson became Chair.
Following the retirement of Jack Perry and Stuart Paterson’s
assumption of the Company’s Chair, Kevin Troup was appointed Chair
of the Company’s Audit and Risk Committee with effect from the
conclusion of the AGM held on 17 May 2024.
Following thorough selection processes which included the services of
the search company Fletcher Jones, which has no connection to the
Company or an individual director, Monica Tepes was appointed to the
Board with effect from 7 February 2025.
As a further part of this plan, it is anticipated that Martin Breuer will
retire from the Board at the conclusion of the forthcoming AGM to be
held on 24 June 2025 having served nine years.
While the Company became operational in March 2019, the
Board considers a Director’s appointment to the Company’s Dutch
predecessor, European Assets Trust NV, as the beginning of their period
of continuous service.
28 | European Assets Trust PLC
Overview
The Company is not an investment trust with ESG or sustainable
characteristics. However, we, the Board, believe investing responsibly
is fundamental to long-term wealth creation. As part of its overall risk
management process, the Manager integrates the consideration of
financially material environmental, social and governance factors into
its research and investment process and encourages stronger ESG
practices to be adopted by issuers through its engagement and voting
activities.
Our approach
We believe that good financial outcomes are more likely to be
achieved if the Manager fully understands the risks and opportunities
that relate to the markets in which the Company invests.
The Manager shares this belief and considers that the review of
financially material ESG factors can provide an important perspective
to its investment research. Consideration of these factors could
affect an investment’s valuation by helping assess future investment
risk and also unlock potential new investment opportunities.
There are two strands to the Board’s approach to responsible
investment:
• The Company’s own responsibilities on matters such as
governance; and
• ESG integration, engagement and proxy voting made on its behalf
by its Manager.
The Company’s compliance with the revised AIC Code of Corporate
Governance is detailed in the Corporate Governance Statement on
pages 43 to 46. In addition, the Principal Policies statement on pages
24 and 25 notes the Company’s policies towards board diversity,
integrity and business ethics, prevention of the facilitation of tax
evasion and the Modern Slavery Act 2015.
The Manager is a signatory to the United Nations Principles for
Responsible Investment (“UNPRI”) under which signatories contribute
to the development of a more sustainable global financial system.
As a signatory, the Manager aims to incorporate the consideration of
financially material ESG factors into its investment processes.
Active ownership
The Manager engages with the management of investee companies
on ESG factors that could have a material impact on their businesses
and, where necessary, encourages improvement in management
practices that it believes could help drive financial returns for clients.
The Manager’s active ownership activities are supported by a breadth
of policies on corporate governance, proxy voting, engagement. These
policies support and inform the Manager’s engagement and voting
activities on behalf of its clients and are available on its website.
ESG integration
The Manager has extensive data and sophisticated analytical tools
available on its research and trading systems, designed to enhance
and inform the integration of ESG factors into investment research,
portfolio construction and investment risk monitoring. The ESG
integration tools include:
• ESG materiality ratings;
• Net zero alignment;
• Sustainable Development Goals alignment;
• Exclusions framework;
• Controversy monitoring; and
• Good governance model.
The Manager’s in-house research and tools are supported by external
data providers such as MSCI, RepRisk, FactSet and ISS.
As stewards of £330.6 million of net assets, we support investing responsibly and the Company
benefits from the Manager’s approach in this field.
Responsible investment
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Chair’s StatementOverview Auditors’ Report
Engagement
Source: Columbia Threadneedle Investments
2024 engagement analysis
During the year ended 31 December 2024, the Manager’s Responsible Investment team had 11 engagements with 5 investee companies on a
range of ESG topics. The most common topics for discussion were climate change, environmental stewardship and human rights.
Climate Change 31%
Environmental Stewardship 27%
Human Rights 19%
Labour Standards 15%
Business Conduct 8%
Example in the reporting period
Smurfit Westrock
Engagement theme: Environmental Stewardship
Smurfit Westrock is an Irish-American supplier of paper-based packaging. The company is vertically integrated, spanning forestry assets,
mainly in Colombia, mills and plants, and is one of the largest paper and board producers in the world. The Manager conducted a two-day
site visit to Smurfit Westrock’s forestry assets and pulp mill in Colombia, accompanied by the company’s Chief Sustainability Officer. The
visit aimed to assess the company’s sustainable forestry practices, community engagement efforts, and the environmental and social
impacts of its operations.
During the visit, the Manager toured Smurfit Westrock’s forest research unit, forestry plantations, and the Cali pulp plant. The Manager
witnessed the company’s scientific rigor and collaborations with universities in forestry research. The plantations are established on
degraded cattle pastures; the Manager observed evidence of heavy soil erosion on similar cattle assets, indicating the positive impact of
afforestation in controlling erosion. Additionally, the Manager toured the new biomass boiler under construction at the Cali plant, which will
replace coal. The Manager encouraged the company to ensure that any third-party sourced biomass is certified. From a social perspective
working with local communities, the Manager also visited two primary and secondary schools funded by Smurfit Westrock in the local area.
Alumni from these schools are often recruited into Smurfit Westrock roles, providing employment opportunities in impoverished regions of
Colombia.
The Manager was impressed by Smurfit Westrock’s sustainable forestry practices, community engagement efforts, and the scope of the
mill revamp in Cali. In particular, the Manager was pleased to see the improvements that Smurfit Westrock had made on its management
of operational impacts on biodiversity, which had been a focus of its engagement for the previous two years. The company had taken on
board the Manager’s recommendations and was appraising some of the eDNA providers the Manager suggested they assess. Moving
forward the Manager will focus its engagement on ensuring that the company sustainably sources feedstocks for the biomass boiler, and
continues to maintain productive relationships with local indigenous communities.
30 | European Assets Trust PLC
Voting on portfolio investments
The Manager’s Corporate Governance Guidelines set out
expectations of the boards of investee companies in terms of good
corporate governance. The Board expects to be informed by the
Manager of any sensitive voting issues involving the Company’s
investments. In the absence of explicit instructions from the Board,
the Manager is empowered to exercise discretion in the use of the
Company’s voting rights and reports at each meeting to the Board
on its voting record.
We expect the Company’s shares to be voted on all holdings where
possible. During the year, the Manager voted at 54 meetings of
investee companies. The Manager did not support management’s
recommendations on at least one resolution at approximately
42% of all meetings. With respect to all items voted, the Manager
supported over 62% of all management resolutions.
Two of the most contentious issues voted at meetings were
compensation and director elections, representing 33% and 32%
of votes against management respectively. The rationale for votes
against management on compensation centred on a number of
issues which did not accord with best practice, including poor
disclosure or a misalignment of pay with long-term performance.
Votes against management on direct elections were most commonly
related to concerns around board independence. Boards should
have a diverse representation of skills, background, and expertise
that can manifest in a variety of ways. Non-executives should
be primarily independent of the company, although the Manager
recognises that, in certain cases, connected non-executives have a
valuable role to play.
The Manager records Milestones where companies make tangible
improvement in their policies and practices in alignment with the
Manager’s engagement objectives. Milestones are recorded using a
three-star rating system: one star is awarded for a smaller change
to ESG practices; two stars are awarded for meaningful updates or
changes to ESG practices; and three stars are awarded for material
changes of significant ESG importance.
Two Milestones were recorded for investee companies held by the
Company during the reporting period.
Milestones in the reporting period
Tecan
Engagement theme: Environmental stewardship
Milestone rating: *
Tecan has begun to provide enhanced waste management information in its most recent annual report. The Manager had encouraged the
company to implement this given this industry’s significant waste volumes.
Koninklijke
Engagement themes: Labour Standards
Milestone rating: *
Koninklijke’s employee engagement participation has increased. The Manager had previously engaged with the company on the low
participation rate in its employee survey. This has subsequently increased. This information is helpful for the company to gain a better
understanding of employee satisfaction to identify potential risks and opportunities in its human capital management strategy.
Report and Accounts 2024 | 31
Strategic Report
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
The Manager recognises the importance of managing climate-related
risks and opportunities effectively to protect long-term investment
returns. In June 2024, the Manager published its updated Climate
Report, detailing how it manages climate-related risks and
opportunities, in line with the recommendations of the Taskforce on
Climate-Related Financial Disclosures (“TCFD”).
During 2024 and in accordance with the deadline for complying with
regulations set by the Financial Conduct Authority, the Manager also
published a TCFD disclosure specific to the Company’s portfolio.
This provides data on the portfolio’s carbon footprint and the largest
individual contributors to it by individual issuer and sector, in addition
to its weighted average carbon intensity (“WACI”).
A summary of this data follows.
Greenhouse gas emissions summary
Portfolio
Carbon footprint (tCO
2
e/$m invested)
Scope 1 & 2 34.2
Scope 3 668.0
Scope 1, 2 & 3 702.2
Weighted average carbon intensity (tCO
2
e/$m revenue)
Scope 1 & 2 68.8
Scope 3 580.6
Scope 1, 2 & 3 725.8
This is the first year that this information has been prepared for the Company. It is
anticipated that this will be prepared annually to allow comparison.
Source: MSCI ESG, as at 31 December 2024
The carbon footprint refers to the total carbon emissions for a
portfolio normalised by the market value of the portfolio, expressed
in tonnes CO2/$M invested.
WACI measures carbon emissions relative to the size of issuers,
measured by revenues. The measure used is tonnes of CO2e
emitted (tCO2e) per $1M of revenues.
The largest contributors to the carbon footprint on an issuer level
were two packaging companies – Smurfit Westrock and Vidrala.
During the year, the Manager engaged paper-based packaging
company Smurfit Westrock on its decarbonisation strategy and
overall remains comfortable that it is progressing towards its 2030
carbon reduction target. Vidrala has committed to reach net zero
emissions across the value chain by 2045.
Climate change
Image: Oslo, Norway
32 | European Assets Trust PLC
Most of the Company’s principal risks are market-related and no
different to those of other investment trusts investing in listed
markets.
The global economy continues to suffer considerable disruption due
to the effects of the war in Ukraine, events in the Middle East, and the
threat of US trade tariffs. The Directors have reviewed the risk register,
which identifies the risks that the Company is exposed to, the controls
in place and the actions being taken to mitigate them. A description
of the principal ongoing risks and uncertainties currently faced by the
Company, and the controls and actions to mitigate those risks, follows.
In addition a detailed review of the risks of the Company’s investment
portfolio including market, credit, foreign currency and liquidity is
provided in note 22 beginning on page 76. Details of actions taken to
reduce the potential impact of these risks is also provided.
The Board has carried out a comprehensive
robust assessment of the principal risks as well
as a thorough process for the identification of
emerging risks and reviewed the uncertainties
that could threaten the Company’s success.
Principal Risks and Changes in the Year
No change in overall risk in year.
Increase in overall risk in year.
Reduction in overall risk in year.
No change in overall risk in year.
No change in overall risk in year.
No change in overall risk in year.
Increase in overall risk in year.
No change in overall risk in year.
Principal Risks Mitigation Actions taken in the year
Poor absolute and/or relative performance
Inappropriate stock selection, asset allocation and gearing levels result in poor NAV and
share price performance against Benchmark and/or peer group. Poor performance results in
reduced demand for the Company’s shares and a widening share price discount.
Poor absolute and/or relative performance
At each Board meeting the Directors monitor performance against Benchmark and peer group.
The Manager attends each regular board meeting and will discuss the reasons for any over or
underperformance.
The Company’s broker, Panmure Liberum, will provide market intelligence at each meeting noting
underlying demand for the Company’s shares.
The Company has received the necessary authority from Shareholders to regulate the premium or
discount that the Company’s shares may trade at by purchasing or issuing shares.
An annual strategy meeting of the Board is held to consider longer term issues and opportunities for the
Company. Representatives of the Company’s broker attended most Board meetings and updated Directors
with regard to changes in the demand for the Company’s shares.
During the year the Board sought and received from Shareholders at the Annual General Meeting held in
May 2024 the powers to issue and buyback shares.
On 2 May 2024, the Board announced that Mine Tezgul would succeed Sam Cosh as the Company’s
Lead Investment Manager. Mine is supported by Philip Dicken. Their biographies are provided on page 13.
Following this, a number of changes were made to the composition of the Company’s investment portfolio.
The Board is closely monitoring the new team’s implementation of the investment process to assess the
impact on performance relative to both the Benchmark and Company’s peer group.
Relevance/attractiveness of the investment strategy and policy
An unattractive investment strategy, loss of cost competitiveness and/or a changing investment
product environment, including competition from other investment vehicles, leads to a fall
in demand for the Company’s shares resulting in an increasing share price discount, share
buybacks and a shrinking number of shares in issue.
Relevance/attractiveness of the investment strategy and policy
Investment policy and performance are reviewed by the Board at each meeting. Rigorous individual
stock reviews are regularly performed by the Manager and action taken to either hold, accumulate or
sell. Cash, borrowing and gearing limits are set and monitored regularly.
The Board closely monitors the level of discount and cost competitiveness.
At each meeting of the Board, the Directors consider and discuss the investment performance of the
Company with the Company’s investment managers. The Board held its annual strategy meeting in October
2024.
The Board reviews at each meeting the level of and movements in the discount and the cost
competitiveness of the Company.
With the increase in the Company’s discount during the year, the level of risk has been raised by the Board.
The Manager
Failure of the Manager or loss of senior staff could cause reputational damage and/or place
the business in jeopardy.
The Manager
The Board meets regularly with the management of Columbia Threadneedle Investments and receives
an annual Audit Assurance Faculty Report on its procedures. The Manager’s appointment can be
terminated at six months’ notice. Key man risk is limited by the team approach adopted by the
investment teams at Columbia Threadneedle Investments.
In prior years, this also included execution risk arising from the post-acquisition integration of BMO
GAM EMEA and Columbia Threadneedle Investments. This process is now complete.
The Board reviewed the level of execution risk during the year. It was lowered to reflect the successful
completion of the integration process.
Service provider failure
Errors, fraud or control failures at service providers or loss of data through increasing cyber
threats or business continuity failure could damage reputation or investors’ interests or result
in losses.
Service provider failure
The Board receives regular control reports from the Manager covering risk and compliance including
oversight of third-party service providers. The Board has access to the Manager’s Risk Manager and
requires any significant issues directly relevant to the Company to be reported immediately. The
Depositary is specifically liable for loss of any of the Company’s securities and cash held in custody.
The Manager continues to strengthen and develop its Risk, Compliance and Internal Control functions
including IT security. Supervision of third-party service providers has been maintained by the Manager and
includes assurances regarding IT security and cyber threat. The Depositary oversees custody of investments
and cash and reports to the Company in accordance with the Alternative Investment Fund Managers
Directive.
During the year the Audit and Risk Committee met with members of the Manager’s internal audit function to
discuss the outcome of their recent reviews and planned activities.
Dividend policy
The Company’s high distribution policy becomes unsustainable.
Dividend policy
The annual dividend is calculated as six per cent of the closing net asset value of the Company as at
31 December of the preceding year.
As at 31 December 2024 the Distributable reserves of the Company was £266.8 million in
comparison to a 2024 dividend cost of £21.2 million.
On 8 January 2025 the Board declared an annual dividend for 2025 of 5.52 pence per share. This was
calculated as six per cent of the 31 December 2024 NAV of the Company.
At each Board meeting during the year the Directors monitor the dividend yield of the Company. The
Directors also monitor the Company’s distributable reserves, and the net asset value five years previously.
Geopolitical issues and their impact
Geopolitical issues including the impact of the war in Ukraine, conflict in the Middle East, and
the threat of US trade tariffs.
Geopolitical issues and their impact
The Company has a clearly defined and approved strategy. The Board can hold additional board
meetings at short notice to discuss the impact of significant changes in the macroeconomic and
geopolitical environment. The Company maintains a portfolio of diversified stocks.
Forward looking stress tests ranging from moderate to extreme scenarios are provided by the
Manager to the Board to support the Viability and Going Concern Statements.
At each meeting of the Board, the Directors consider and discuss the investment performance of the
Company with the Company’s investment managers. The Board held its annual strategy meeting in October
2024. During its annual strategy meeting, the Board received a presentation from a strategist from a major
German bank on the prospects for the German and wider Eurozone economies.
At the March 2025 Audit and Risk Committee meeting, the Directors reviewed updated forward looking
stress tests prepared by the Manager providing support for the Viability and Going Concern Statements
disclosed on page 38.
As this remains highly elevated it is an area of focus for Board review.
Cyber risk
The risk of financial loss, disruption or damage to the reputation of the Company due to the failure
of information technology systems (including those of a third party). The risk includes intentional
damage to systems and the theft of assets or data.
Cyber risk
Performance of service providers is reviewed annually. The Board receives an annual Audit Assurance
Faculty Report from Columbia Threadneedle Investments and other key service providers.
Columbia Threadneedle Investments operate extensive testing of cyber controls including simulated
attacks.
The Board has raised the risk level due to the increased potential for attacks and fraud.
During the year members of the Information Security team at Columbia Threadneedle Investments presented
to the Board on its 2024 development and testing programmes.
Regulatory and compliance (including ESG reporting)
To maintain its investment trust status, the Company is required to comply with Section 1158
of the UK Corporation Tax 2010 Act. The Company is also required to comply with UK company
law, is subject to the requirements of the AIFMD and the relevant regulations of the London
Stock Exchange and the Financial Conduct Authority.
Regulatory and compliance (including ESG reporting)
At each Board meeting the Company receives an update from the Secretary on legal, regulatory and
accounting developments. The Company is a member of the Association of Investment Companies
which provides guidance on regulatory developments. The Company has appointed EY LLP as its tax
advisor and Shepherd and Wedderburn as its legal counsel. The Manager has a long established
and highly regarded Responsible Investment team which presents to the Board annually.
The Manager continues to strengthen and develop its Risk, Compliance and Internal Control functions. The
Depositary oversees custody of investments and cash and reports to the Company in accordance with the
Alternative Investment Fund Managers Directive (“AIFMD”).
Strategic Report
Report and Accounts 2024 | 33
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Principal Risks Mitigation Actions taken in the year
Poor absolute and/or relative performance
Inappropriate stock selection, asset allocation and gearing levels result in poor NAV and
share price performance against Benchmark and/or peer group. Poor performance results in
reduced demand for the Company’s shares and a widening share price discount.
Poor absolute and/or relative performance
At each Board meeting the Directors monitor performance against Benchmark and peer group.
The Manager attends each regular board meeting and will discuss the reasons for any over or
underperformance.
The Company’s broker, Panmure Liberum, will provide market intelligence at each meeting noting
underlying demand for the Company’s shares.
The Company has received the necessary authority from Shareholders to regulate the premium or
discount that the Company’s shares may trade at by purchasing or issuing shares.
An annual strategy meeting of the Board is held to consider longer term issues and opportunities for the
Company. Representatives of the Company’s broker attended most Board meetings and updated Directors
with regard to changes in the demand for the Company’s shares.
During the year the Board sought and received from Shareholders at the Annual General Meeting held in
May 2024 the powers to issue and buyback shares.
On 2 May 2024, the Board announced that Mine Tezgul would succeed Sam Cosh as the Company’s
Lead Investment Manager. Mine is supported by Philip Dicken. Their biographies are provided on page 13.
Following this, a number of changes were made to the composition of the Company’s investment portfolio.
The Board is closely monitoring the new team’s implementation of the investment process to assess the
impact on performance relative to both the Benchmark and Company’s peer group.
Relevance/attractiveness of the investment strategy and policy
An unattractive investment strategy, loss of cost competitiveness and/or a changing investment
product environment, including competition from other investment vehicles, leads to a fall
in demand for the Company’s shares resulting in an increasing share price discount, share
buybacks and a shrinking number of shares in issue.
Relevance/attractiveness of the investment strategy and policy
Investment policy and performance are reviewed by the Board at each meeting. Rigorous individual
stock reviews are regularly performed by the Manager and action taken to either hold, accumulate or
sell. Cash, borrowing and gearing limits are set and monitored regularly.
The Board closely monitors the level of discount and cost competitiveness.
At each meeting of the Board, the Directors consider and discuss the investment performance of the
Company with the Company’s investment managers. The Board held its annual strategy meeting in October
2024.
The Board reviews at each meeting the level of and movements in the discount and the cost
competitiveness of the Company.
With the increase in the Company’s discount during the year, the level of risk has been raised by the Board.
The Manager
Failure of the Manager or loss of senior staff could cause reputational damage and/or place
the business in jeopardy.
The Manager
The Board meets regularly with the management of Columbia Threadneedle Investments and receives
an annual Audit Assurance Faculty Report on its procedures. The Manager’s appointment can be
terminated at six months’ notice. Key man risk is limited by the team approach adopted by the
investment teams at Columbia Threadneedle Investments.
In prior years, this also included execution risk arising from the post-acquisition integration of BMO
GAM EMEA and Columbia Threadneedle Investments. This process is now complete.
The Board reviewed the level of execution risk during the year. It was lowered to reflect the successful
completion of the integration process.
Service provider failure
Errors, fraud or control failures at service providers or loss of data through increasing cyber
threats or business continuity failure could damage reputation or investors’ interests or result
in losses.
Service provider failure
The Board receives regular control reports from the Manager covering risk and compliance including
oversight of third-party service providers. The Board has access to the Manager’s Risk Manager and
requires any significant issues directly relevant to the Company to be reported immediately. The
Depositary is specifically liable for loss of any of the Company’s securities and cash held in custody.
The Manager continues to strengthen and develop its Risk, Compliance and Internal Control functions
including IT security. Supervision of third-party service providers has been maintained by the Manager and
includes assurances regarding IT security and cyber threat. The Depositary oversees custody of investments
and cash and reports to the Company in accordance with the Alternative Investment Fund Managers
Directive.
During the year the Audit and Risk Committee met with members of the Manager’s internal audit function to
discuss the outcome of their recent reviews and planned activities.
Dividend policy
The Company’s high distribution policy becomes unsustainable.
Dividend policy
The annual dividend is calculated as six per cent of the closing net asset value of the Company as at
31 December of the preceding year.
As at 31 December 2024 the Distributable reserves of the Company was £266.8 million in
comparison to a 2024 dividend cost of £21.2 million.
On 8 January 2025 the Board declared an annual dividend for 2025 of 5.52 pence per share. This was
calculated as six per cent of the 31 December 2024 NAV of the Company.
At each Board meeting during the year the Directors monitor the dividend yield of the Company. The
Directors also monitor the Company’s distributable reserves, and the net asset value five years previously.
Geopolitical issues and their impact
Geopolitical issues including the impact of the war in Ukraine, conflict in the Middle East, and
the threat of US trade tariffs.
Geopolitical issues and their impact
The Company has a clearly defined and approved strategy. The Board can hold additional board
meetings at short notice to discuss the impact of significant changes in the macroeconomic and
geopolitical environment. The Company maintains a portfolio of diversified stocks.
Forward looking stress tests ranging from moderate to extreme scenarios are provided by the
Manager to the Board to support the Viability and Going Concern Statements.
At each meeting of the Board, the Directors consider and discuss the investment performance of the
Company with the Company’s investment managers. The Board held its annual strategy meeting in October
2024. During its annual strategy meeting, the Board received a presentation from a strategist from a major
German bank on the prospects for the German and wider Eurozone economies.
At the March 2025 Audit and Risk Committee meeting, the Directors reviewed updated forward looking
stress tests prepared by the Manager providing support for the Viability and Going Concern Statements
disclosed on page 38.
As this remains highly elevated it is an area of focus for Board review.
Cyber risk
The risk of financial loss, disruption or damage to the reputation of the Company due to the failure
of information technology systems (including those of a third party). The risk includes intentional
damage to systems and the theft of assets or data.
Cyber risk
Performance of service providers is reviewed annually. The Board receives an annual Audit Assurance
Faculty Report from Columbia Threadneedle Investments and other key service providers.
Columbia Threadneedle Investments operate extensive testing of cyber controls including simulated
attacks.
The Board has raised the risk level due to the increased potential for attacks and fraud.
During the year members of the Information Security team at Columbia Threadneedle Investments presented
to the Board on its 2024 development and testing programmes.
Regulatory and compliance (including ESG reporting)
To maintain its investment trust status, the Company is required to comply with Section 1158
of the UK Corporation Tax 2010 Act. The Company is also required to comply with UK company
law, is subject to the requirements of the AIFMD and the relevant regulations of the London
Stock Exchange and the Financial Conduct Authority.
Regulatory and compliance (including ESG reporting)
At each Board meeting the Company receives an update from the Secretary on legal, regulatory and
accounting developments. The Company is a member of the Association of Investment Companies
which provides guidance on regulatory developments. The Company has appointed EY LLP as its tax
advisor and Shepherd and Wedderburn as its legal counsel. The Manager has a long established
and highly regarded Responsible Investment team which presents to the Board annually.
The Manager continues to strengthen and develop its Risk, Compliance and Internal Control functions. The
Depositary oversees custody of investments and cash and reports to the Company in accordance with the
Alternative Investment Fund Managers Directive (“AIFMD”).
34 | European Assets Trust PLC
Kate Cornish-Bowden, Senior Independent
Director and Chair of the Remuneration and
Nomination Committee
Kate was appointed to the Board on
2 January 2024 and became Senior
Independent Director and Chair of the
Remuneration and Nomination Committee
on 31 January 2024. Kate is the Chair of
International Biotechnology Trust plc, and
a non-executive director of Finsbury Growth
& Income Trust plc and CC Japan Income
& Growth Trust plc, where she is also chair
of the Audit Committee. Previously, Kate
was the senior independent non-executive
director of Schroder Oriental Income Fund
Limited. Kate’s executive roles include
several years as a fund manager for
Morgan Stanley Investment Management,
where she was managing director and
head of the global equity team. Prior to
Morgan Stanley she worked as a research
analyst at M&G. Kate is a member of the
Chartered Financial Analyst Institute, holds
a Masters in Business Administration,
and has completed the Financial Times
Non-Executive Director Diploma. Shared
directorships with other Directors: None
Directors
Stuart Paterson, Chair and Chair of the
Management Engagement Committee
Stuart was appointed to the Board on
22 July 2019 and became Chair and Chair
of the Management Engagement Committee
on 17 May 2024. Stuart is a co-founder and
partner of Scottish Equity Partners (“SEP”),
one of Europe’s leading technology growth
equity investors with a strong investment
performance track record, managing more
than £1 billion of institutional capital over
two decades. Stuart has over 25 years
of equity investing in European private
companies and has served on Boards in
numerous sectors over the years. Notable
private company investments of Stuart on
behalf of SEP include Cambridge Silicon
Radio plc which listed and became a
FTSE 250 company, and Skyscanner the
consumer internet business which became
the world’s largest flight search business.
Stuart trained with Ernst & Young and is
a member of the Institute of Chartered
Accountants of Scotland. He latterly worked
in Corporate Finance for Ernst & Young
before moving into equity investment.
Shared directorships with other Directors:
None
Martin Breuer
Martin was appointed to the Company’s
predecessor European Assets Trust NV on
10 May 2016. Martin is also an executive
director of Gruppo SISME SpA. Previously
he was an executive with Siemens, Chief
Financial Officer of SEVES and Intercos
Group. In addition, he has served as Chief
Executive Officer for Intercos in Asia Pacific,
Chief Executive Officer of Italian cosmetic
manufacturer Gotha Cosmetics and Chief
Executive Officer of the Chinese Cosmetics
brand Carslan in Italy. It is intended that
Martin will retire from the Board at the
conclusion of the Annual General Meeting
to be held on 24 June 2025. Shared
directorships with other Directors: None
Report and Accounts 2024 | 35
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Kevin Troup, Chair of the Audit and Risk
Committee
Kevin was appointed to the Board on
19 May 2023 and became Chair of the
Audit and Risk Committee on 17 May 2024.
Kevin is a qualified Chartered Accountant.
He has worked in the fund management
industry since 1995 with senior investment
roles at Scottish Life, Martin Currie and
Standard Life Investments. He is now a non-
executive director at Baring Fund Managers
Limited. He is also a non-executive director
and Chair of the Audit Committee of
Baillie Gifford Shin Nippon PLC. His other
appointments include Chair of the Risk,
Audit and Compliance Committee at the
BT Pension Scheme Management Limited
and he is a director of Kintail Trustees
Limited, the corporate trustee of The
Robertson Trust charity where he is chair
of the Investment Committee. Shared
directorships with other Directors: None
Monica Tepes
Monica was appointed to the Board on
7 February 2025. She has twenty years of
experience in the funds sector. She built
her expertise in a variety of roles, buy-side
and sell-side, which gave her varied insights
into the investment trusts sector. Monica is
currently a non-executive director of Golden
Prospect Precious Metals Limited. From 2017
to 2023 she was a director at finnCap Capital
Markets Limited (currently Cavendish Capital
Markets Limited), where she cofounded and
developed the Investment Companies team.
Prior to this she was Head of Investment
Companies Research at Cantor Fitzgerald
Europe and a no.1 Extel rated alternatives
funds analyst. She began her career as a
fund analyst and assistant portfolio manager
at Killik & Co Wealth Managers. She is a
member of the AIC Statistics Committee,
is a CFA charterholder and has a degree
in Finance, Insurance, Banks and Capital
Markets from the Academy of Economic
Studies Bucharest. Shared directorships with
other Directors: None
Pui Kei Yuen
Pui Kei was appointed to the Board on 26
February 2021. Pui Kei has over 30 years’
experience in equities. Her roles have
included UK institutional equity portfolio
management and research at Mercury
Asset Management, Pan European equity
responsibilities at UBS and Bank of America
Merrill Lynch, advising large institutional
investors and hedge funds, and working
with the Boards of earlier stage private
companies. Pui Kei is also a non-executive
director and Chair of the Risk Committee of
JPMorgan American Investment Trust PLC.
Shared directorships with other Directors:
None
36 | European Assets Trust PLC
Management and Advisers
Board
Stuart Paterson (Chair and Chair of the Management Engagement
Committee)
Martin Breuer
†
Kate Cornish-Bowden (Senior Independent Director and Chair of the
Remuneration and Nomination Committee)
Monica Tepes – appointed 7 February 2025
Kevin Troup (Chair of the Audit and Risk Committee)
Pui Kei Yuen
All Directors are non-executive
†
It is anticipated that Martin Breuer will retire at the conclusion of the Annual
General Meeting to be held on 24 June 2025.
Registered Office
Cannon Place
78 Cannon Street
London EC4N 6AG
Investment Manager, Secretary and AIF Manager
Columbia Threadneedle Investment Business Limited
6th Floor
Quartermile 4
7a Nightingale Way
Edinburgh EH3 9EG
Tel No. 0131 573 8300
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Tel No. 0370 703 0128
Loan Provider
The Royal Bank of Scotland International Limited, London Branch,
1 Princes Street
London
EC2R 8BP
Brokers
Panmure Liberum
Ropemaker Place, Level 12
25 Ropemaker Street
London EC2Y 9LY
Depositary
JPMorgan Europe Limited
25 Bank Street
Canary Wharf
London E14 5JP
Custodian
JPMorgan Chase Bank
National Association, London Branch
25 Bank Street
Canary Wharf
London E14 5JP
Independent Auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London SE1 2RT
Lawyers
Shepherd and Wedderburn LLP
9 Haymarket Square
Edinburgh EH3 8FY
Tax Advisers
Ernst & Young LLP
Atria One
144 Morrison Street
Edinburgh EH3 9EX
Website
www.europeanassets.co.uk
Report and Accounts 2024 | 37
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Directors’ Report
The Directors submit the Report and Accounts of the Company for the year ended 31 December
2024. The Directors’ biographies, the Corporate Governance Statement; the Reports of the
Remuneration and Nomination Committee; the Audit and Risk Committee and the Management
Engagement Committee; and the Directors’ Remuneration Report form part of this Directors’ Report.
Statement regarding Report and Accounts
The Directors consider that, following advice from the Audit and
Risk, Management Engagement, and Remuneration and Nomination
Committees, the Report and Accounts, taken as a whole, is
fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Company’s position and
performance, business model and strategy. The Audit and Risk
Committee has reviewed the final draft Report and Accounts for the
purposes of this assessment. The market outlook for the Company
can be found on page 9. Principal risks can be found on page 32
with further information in note 22 beginning on page 76.
Accounting
Shareholders will be asked to approve the adoption of the Report
and Accounts at the forthcoming AGM (Resolution 1).
The financial statements, starting on page 61, comply with current
UK-adopted International Accounting Standards, supplemented by
the Statement of Recommended Practice “Financial Statements of
Investment Trust Companies and Venture Capital Trusts” (“SORP”).
The significant accounting policies of the Company are set out in
note 2 to the accounts. The auditors’ unqualified opinion on the
financial statements appears on pages 55 to 60.
Results and dividends
The results for the period are set out in the attached accounts. The
Company’s dividend payments during the year ended 31 December
2024 are set out below.
Dividends paid in the year ended 31 December 2024
First interim dividend for the year ended 31 December 2024
paid on 31 January 2024
1.475p
Second interim dividend for the year ended 31 December 2024
paid on 30 April 2024
1.475p
Third interim dividend for the year ended 31 December 2024
paid on 31 July 2024
1.475p
Fourth interim dividend for the year ended 31 December 2024
paid on 31 October 2024
1.475p
As explained in the Chair’s Statement, the Board has resolved to
pay a dividend of, in aggregate, 5.52 pence per share for 2025. The
dividend for 2025 will be paid in four equal, quarterly instalments
on 31 January, 30 April, 31 July and 31 October 2025 to registered
holders of shares at an appropriate
record time. The first quarterly
dividend of 1.38 pence per share was paid on 31 January 2025
with the second payable on 30 April 2025 to Shareholders on the
register of members on 4 April 2025 with an ex dividend date of
3 April 2025.
As the Company’s current practice is to pay dividends quarterly
at the end of January, April, July and October, the Company does
not pay a final dividend that would otherwise require formal
Shareholder approval at a General Meeting. In the absence of such
a requirement for Shareholder approval of a final dividend, approval
will be sought at the forthcoming 2025 Annual General Meeting
(“AGM”) to approve the Company’s dividend policy as set out on
page 24 of this report. (Resolution 2 in the Notice of AGM set out
on pages 83 to 86).
Company status
The Company is a public limited company and an investment
company as defined by section 833 of the Companies Act 2006.
The Company is limited by shares and is registered in England and
Wales with company registration number 11672363. It is subject
to the Listing Rules of the UK Financial Conduct Authority, UK
legislation and regulations including company law, financial reporting
standards, taxation law and its own articles of association.
Taxation
As set out on page 72 and in note 9 to the accounts, the Company
is exempt from UK Corporation Tax on its dividend income and from
UK Corporation Tax on any capital gains arising from the portfolio
of investments, provided it complies at all times with section 1158
of the Corporation Tax Act 2010. Dividends received from investee
companies domiciled outside the UK are subject to taxation in those
countries in accordance with relevant double taxation treaties.
38 | European Assets Trust PLC
Viability and going concern statements
The UK Corporate Governance Code requires a board to assess
the future prospects for a company, and report on the assessment
within the annual report.
The Board considered that a number of characteristics of the
Company’s business model and strategy were relevant to this
assessment:
• The Company as an active investor looks to long-term
outperformance compared to its Benchmark rather than short
term opportunities;
• The Company is a closed-end investment company and as such
is not required to sell investments in a market downturn in
order to fund investor redemptions;
• The Company’s investment objective, strategy and policy,
which are subject to regular Board monitoring, mean that it is
invested in realisable, listed securities and that the level of
borrowings is restricted; and
• The Company’s business model and strategy is not time
limited.
Also relevant were a number of aspects of the Company’s
operational arrangements:
• It retains title to all assets held by the Custodian under the
terms of formal agreements with the Custodian and Depositary;
• The annual dividend declared by the Company is determined in
accordance with the year-end net asset value; and
• Revenue and expenditure forecasts of the Company are
reviewed by the Directors at each Board Meeting.
In addition, the Board carried out a robust assessment of the
principal risks which could threaten the Company’s objective,
strategy, future performance, liquidity and solvency. These risks,
mitigating actions in place to ensure the Company’s resilience and
the processes for monitoring risks are set out on page 32 and
in note 22 of the accounts. These principal risks were identified
as relevant to the viability assessment. In undertaking this
assessment, the Board took into account the following factors:
• the liquidity of the Company’s portfolio;
• the existence of a borrowing facility;
• the effects of any significant future falls in investment values
and income receipts on the ability to repay and re-negotiate
borrowings;
• the maintenance of dividend payments and the retention of
investors;
• the potential need for more share issuance capacity in the
event of unexpected market demand; and
• minimising the discount between the Company’s share price
and net asset value.
The Board gave careful consideration to the effects of the war in
Ukraine, events in the Middle East, and the threat of US trade
tariffs, and the resulting volatility in stockmarkets and economic
disruption when making this assessment.
In March 2024, the Company entered into a revolving multicurrency
loan with a maximum potential facility of €60 million with The Royal
Bank of Scotland International (“RBSI”), London Branch. In March
2025, the facility was extended until February 2026 on similar
terms.
As discussed in note 23 to the financial report on page 81, the
Company has a number of banking covenants and at present
the Company’s financial position does not suggest that any of these
are close to being breached. The primary risk is that there is a very
substantial decrease in the net asset value of the Company in the
short to medium term. Financial modelling has been undertaken
to consider compliance with these covenants in several scenarios
including the outcome of the 2008 Global Financial Crisis. These
extreme but plausible scenarios indicate that the loan covenants
would not be breached. In addition, the Directors have considered
the remedial measures that are open to the Company if such a
covenant breach appears possible. As at 1 April 2025, the latest
practicable date before the publication of this report, borrowings
amounted to €35.0 million (£29.3 million). This is in comparison to
a Net Asset Value of €392.2 million (£328.0 million). In accordance
with its investment policy the Company is invested mainly in readily
realisable listed securities. These can be realised if necessary, to
repay the loan facility and fund the cash requirements for future
dividend payments.
These matters were assessed over a five-year period to April 2030.
The Board of the Company will continue to assess viability over
five-year rolling periods, taking account of foreseeable severe but
plausible scenarios. A rolling five-year period represents the horizon
over which the Board believes it can form a reasonable expectation
of the Company’s prospects, balancing its financial flexibility and
scope with the current uncertain outlook for longer-term economic
conditions affecting it and its Shareholders.
Based on their assessment, and in the context of the Company’s
business model, strategy and operational arrangements set out
before, the Board has a reasonable expectation that the Company
will be able to continue in operation and meet its liabilities as they
fall due over the five-year period to April 2030. For this reason, the
Board also considers it appropriate to continue adopting the going
concern basis in preparing the Report and Accounts.
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Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Statement as to disclosure of information to the auditors
Each of the Directors confirms that, so far he or she is aware, there
is no information relevant to the preparation of the Report and
Accounts of which the auditors are unaware and that he or she has
taken all the steps that a Director ought to have taken to
be aware of relevant audit information and to establish that the
auditors are aware of that information.
Capital structure
As at 31 December 2024 there were 360,069,279 Ordinary Shares
in issue. As at 1 April 2025 (being the latest practicable date before
publication of this report) the number of Ordinary Shares in issue
was 360,069,279. No Ordinary Shares were held in treasury.
All Ordinary Shares rank equally for dividends and distributions
and carry one vote each. There are no restrictions concerning the
transfer of securities in the Company, no special rights with regard
to control attached to securities, no agreements between holders
of securities regarding their transfer known to the Company and no
agreement which the Company is party to that affects its control
following a takeover bid.
Details of the capital structure can be found in note 16 to the
accounts. The revenue profits of the Company, together with
the realised capital profits and the balance of the Distributable
Reserve are available for distribution by way of dividends to the
holders of the Ordinary Shares.
Upon a winding-up, after meeting the liabilities of the Company,
the surplus assets would be distributed to Shareholders pro-rata
to their holdings of Ordinary Shares. Full details are set out in the
Company’s articles of association.
Share capital
At 31 December 2024 no notifications of significant voting
rights had been received under the Financial Conduct Authority’s
Disclosure and Transparency Rules.
Planholders of CT Savings Plans owned 125,443,387 Ordinary
Shares or 34.8 per cent of the issued share capital of the Company,
at 31 December 2024. For non-contentious resolutions the nominee
company holding these shares votes the shares held on behalf
of planholders who have not returned their voting directions in
proportion to the directions of those who have (“proportional
voting”). Implementation of this arrangement is subject to a
minimum threshold of 5% of the shares held in the CT Savings
Plans being voted. A maximum limit of 50,000 shares that any one
individual investor can vote, being approximately 1.0% of
the relevant minimum threshold, also applies. Any individual voting
directions received in excess of the maximum limit will remain valid
but will not form part of the proportional voting basis. Planholders
have the right to exclude their shares from the proportional voting
arrangement.
Borrowings
In March 2024 the Company entered into a multi-currency revolving
loan with a maximum potential facility of £60 million with The
Royal Bank of Scotland International Limited, London Branch
expiring March 2025. The loan covenants have all been met
during the period. The interest rate on the amount drawn down
and commitment fees payable on undrawn amounts are based
on the commercial terms agreed with The Royal Bank of Scotland
International Limited, London Branch.
As at 31 December 2024 the loan facility was €35 million (£28.9
million) drawn.
Following the year end, the Company’s loan facility with The Royal Bank
of Scotland International Limited, London Branch was extended until
February 2026 on similar terms.
Remuneration Report
The Directors’ Remuneration Report, which can be found on
page 48, provides detailed information on the remuneration
arrangements for Directors of the Company, including the Directors’
Remuneration Policy.
Remuneration is set at a level commensurate with the skills
and experience necessary for the effective stewardship of the
Company and the expected contribution of the Board as a whole in
continuing to achieve the investment objective.
The policy is subject to approval by Shareholders every three years.
There have been no changes to the policy since the last approval by
Shareholders in 2023.
It is intended that the policy approved by Shareholders at the 2023
AGM will continue for the three-year period ending at the AGM in
2026.
Shareholders will be asked to approve the Directors’ Remuneration
Report (Resolution 3).
Appointment of auditors and auditor’s remuneration
Resolutions 4 and 5 seek Shareholder approval, respectively, for
the re-appointment of PricewaterhouseCoopers LLP as the auditors
of the Company and to authorise the Audit and Risk Committee
to determine their remuneration for the audit of the Report and
Accounts for the year ended 31 December 2025.
40 | European Assets Trust PLC
Director re-elections
The names of the Directors, along with their biographical details, are
set out on pages 34 and 35.
All current directors with the exception of Martin Breuer will stand
for re-election by Shareholders at the AGM. Martin Breuer will retire
from the Board at the conclusion of the Company’s forthcoming
AGM to be held on 24 June 2025.
Following a review of their performance, the Board believes that
each of the Directors standing for re-election has and will continue
to make a valuable and effective contribution to the Company. The
skills and experience each Director brings to the Board for the
long-term sustainable success of the Company are set out below.
The Board recommends that Shareholders vote in favour of the re-
election of the Directors (Resolutions 6 to 10).
Resolution 6 concerns the re-election of Stuart Paterson who was
appointed to the Board on 22 July 2019 and became Chair and
Chair of the Management Engagement Committee on 17 May 2024.
He was a co-founder and is a partner of Scottish Equity Partners,
one of Europe’s leading technology growth equity investors. He is
an experienced technology investor with over 25 years of equity
investing in European private companies and is a member of the
Institute of Chartered Accountants of Scotland.
Resolution 7 concerns the re-election of Kate Cornish-Bowden
who was appointed to the Board on 2 January 2024 and became
Senior Independent Director and Chair of the Remuneration and
Nomination Committee on 31 January 2024. She worked for
several years as a fund manager for Morgan Stanley Investment
Management, where she was managing director and head of
the global equity team. Prior to Morgan Stanley she worked as a
research analyst at M&G. Kate is currently Chair of one investment
trust, the Chair of Audit of another and a non-executive director of a
third.
Resolution 8 concerns the election of Monica Tepes who was
appointed to the Board on 7 February 2025. She has twenty
years of experience in the funds sector including senior roles in
investment company brokerage and research. She is also currently a
non-executive director of another investment company.
Resolution 9 concerns the re-election of Kevin Troup who was
appointed to the Board on 19 May 2023 and became Chair of the
Audit and Risk Committee on 17 May 2024. He has worked in the
fund management industry since 1995 with senior investment
roles at Scottish Life, Martin Currie and Standard Life Investments.
Among his current roles he is a non-executive director at Baring
Fund Managers Limited and chair of the Risk, Audit and Compliance
Committee at the BT Pension Scheme Management Limited. He is
also a non-executive director and Chair of the Audit Committee of
another investment trust. He is a qualified Chartered accountant.
Resolution 10 concerns the re-election of Pui Kei Yuen who was
appointed to the Board on 26 February 2021. She has extensive
experience in the fund management and investment banking
industries at Mercury Asset Management, UBS and Bank of America
Merrill Lynch. She is also currently a non-executive director of
another investment trust.
Directors’ interests and indemnification
There were no contracts of significance to which the Company was a
party and in which a Director is, or was, materially interested during
the period. There are no agreements between the Company and its
Directors concerning compensation for loss of office.
The Company has granted deeds of indemnity to the Directors
in respect of liabilities that may attach to them in their capacity as
Directors of the Company. These deeds cover any liabilities that may
arise to a third-party for negligence, default or breach of trust or
duty. These deeds of indemnity are qualifying third-party provisions
(as defined by section 234 of the Companies Act 2006) and have
been in force throughout the period of review and remain in place
at the date of this report. They are available for inspection at the
Company’s registered office during normal business hours and
at the AGM. The Company also maintains directors’ and officers’
liability insurance.
Safe custody of assets
The Company’s investments are held in safe custody by JPMorgan
Chase Bank (“the Custodian”). Operational matters with the
Custodian are carried out on the Company’s behalf by the Manager
in accordance with the provisions of the management agreement.
The custodian is paid a variable fee dependent on the number of
trades transacted and location of the securities held.
Depositary
JPMorgan Europe Limited acts as the Company’s depositary, (“the
Depositary”) in accordance with the AIFMD. The Depositary’s
responsibilities, which are set out in an Investor Disclosure
Document on the Company’s website, include: cash monitoring;
ensuring the proper segregation and safekeeping of the Company’s
financial instruments that are held by the Custodian; and monitoring
the Company’s compliance with investment and leverage limits
requirements.
Although the Depositary has delegated the safekeeping of all assets
held within the Company’s investment portfolio to the Custodian,
in the event of loss of those assets that constitute financial
Report and Accounts 2024 | 41
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Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
instruments under the AIFMD, the Depositary will be obliged to
return to the Company financial instruments of an identical type,
or the corresponding amount of money, unless it can demonstrate
that the loss has arisen as a result of an external event beyond its
reasonable control, the consequences of which would have been
unavoidable despite all reasonable efforts to the contrary.
The Manager’s fee
On 2 May 2024 the Board announced an amendment to the basis
of calculation of the investment management fee payable to the
Manager.
Previously, the Manager received a fee equal to 0.75% per annum
of the value of funds under management up to €400 million, and in
cases where the value of funds under management exceeded €400
million, the applicable rate over such excess value was 0.6% per
annum.
Following the amendment, which was effective from 1 January 2024,
the funds under management to which the applicable rate of 0.75%
is applied was lowered from €400 million to €300 million. For
funds under management in excess of €300 million, the applicable
rate was reduced from 0.60% to 0.55% per annum. The basis of
calculation for funds under management remains unchanged.
An additional fee of £100,000 per annum is payable by the
Company to the Manager for the provision of administrative
services.
AGM
The Notice of AGM to be held on 24 June 2025 at 3.00pm is set
out on pages 83 to 86.
Directors’ authority to allot shares and disapplication of
pre-emption rights
The Directors are seeking to renew their authority to allot shares.
Resolution 11 in the Notice of AGM, which will be proposed
as an ordinary resolution, seeks renewal of such authority to
allot Ordinary Shares up to an aggregate nominal amount of
£3,600,692 (being an amount equal to 10 per cent of the total
issued share capital of the Company as at 1 April 2025, being the
latest practicable date before the publication of this report).
Under Resolution 12, which will be proposed as a special
resolution, the Directors are also seeking to renew the authority
to allot new Ordinary Shares and/or sell Ordinary Shares held by
the Company as treasury shares for cash as if section 561 of the
Companies Act 2006 did not apply. (This section requires that, when
equity securities are allotted for cash, such new shares are first
offered to existing equity shareholders in proportion to their existing
holdings of shares, this entitlement being known as ‘‘pre-emption
rights’’).
Allotments of Ordinary Shares pursuant to these authorities would
enable the Directors to issue shares for cash and/or to sell equity
securities held as treasury shares to take advantage of changes in
market conditions that may arise, in order to increase the amount
of the Company’s issued share capital. A likely purpose of such
an increase would be to improve the liquidity of the market in the
Company’s shares, attempts to manage any premium that the
Company’s shares may be trading at, and to spread the fixed costs
of administering the Company over a wider base. The Directors
believe that this authority, if granted to the Directors, would provide
the necessary flexibility permitted by investor protection guidelines
to respond to market developments in the interest of existing
Shareholders.
Except where authorised and as detailed below, no shares will be
issued or sold from treasury by the Directors at a price which (after
costs and expenses) is less than the net asset value per share at
the time of the issue or sale, unless the shares are first offered pro
rata to Shareholders on a pre-emptive basis.
The Company has, however, been authorised to sell any treasury
shares held from time-to-time at below net asset value subject to
the limitation on asset dilution set out as follows.
The absolute level of dilution through the sale of treasury shares is
restricted to 0.5% of Net Asset Value in any one year, and treasury
shares which are sold at a discount to Net Asset Value will only be
sold where the discount at which the shares are sold is lower than
the average discount at which the shares have been acquired, and
in addition the price at which shares are sold must not be less than
the market bid price at time of sale.
Resolution 12, if passed, will give the Directors power to allot for
cash Ordinary Shares of the Company and to sell Ordinary Shares
out of treasury up to a maximum nominal amount of £3,600,692
(being an amount representing 10 per cent of the total issued
ordinary share capital of the Company as at 1 April 2025, being the
latest practicable date before the publication of this report) without
the application of the pre-emption rights described above. The
calculation of the above figure is in accordance with the Investment
Association Share Capital Management Guidelines and other
applicable investor protection guidelines, and the Directors will not
use the authority other than in accordance with those guidelines.
The authorities contained in Resolutions 11 and 12 will continue
until the AGM of the Company in 2026, and the Directors
envisage seeking renewal of these authorities in 2026 and in
42 | European Assets Trust PLC
each succeeding year, subject to such renewals again being in
accordance with the applicable investor protection guidelines.
Directors’ Authority to Buy Back Shares
The current authority of the Company to make market purchases
of up to 10 per cent of the issued Ordinary Shares expires at the
end of the AGM and Resolution 13, as set out in the Notice of the
AGM, seeks renewal of such authority. The renewed authority to
make market purchases will be in respect of a maximum of 14.99
per cent of the issued Ordinary Shares as at the date of the passing
of the resolution (approximately 54 million Ordinary Shares). The
price paid for Ordinary Shares under this authority will not be less
than the nominal value of 10p per Ordinary Share nor more than the
highest of:
(i) 5 per cent above the average of the middle market values of
those shares for the five business days before the shares are
purchased;
(ii) the price of the last independent trade on the trading venue
where the purchase is carried out; and
(iii) the highest current independent bid on that venue.
This power will only be exercised if, in the opinion of the Directors,
a purchase will result in an increase in net asset value per share
of the Ordinary Shares and be in the interests of Shareholders as
a whole. Purchases would only be made for cash at a cost which
is below the prevailing net asset value per share. Any shares
purchased under this authority will be cancelled or held in treasury
for future re-issue. The effect of any cancellation would be to reduce
the number of shares in issue. For most purposes, where held
in treasury, shares are treated as if they had been cancelled (for
example they carry no voting rights and do not rank for dividends).
The purpose of holding some shares in treasury is to allow
the Company to issue or sell these shares quickly and cost
effectively, thus providing the Company with greater flexibility.
The authority contained in Resolution 13, if passed, will continue
until the AGM of the Company in 2026, and the Directors envisage
seeking renewal of this authority in 2026 and in each succeeding
year, subject to such renewals again being in accordance with the
applicable investor protection guidelines.
Recommendation
The Board considers that the passing of the resolutions to be
proposed at the AGM is in the interests of the Company and its
Shareholders as a whole and they unanimously recommend that
Shareholders vote in favour of all of them as the Directors intend to
do in respect of their beneficial holdings.
Statement Regarding Report and Accounts
Following a detailed review of the Report and Accounts by the Audit
and Risk Committee, the Directors consider that taken as a whole
it is fair, balanced and understandable and provides the information
necessary for Shareholders to assess the Company’s performance,
business model and strategy. In reaching this conclusion, the
Directors have assumed that the reader of the Report and Accounts
would have a reasonable level of knowledge of the investment
industry in general and investment trusts in particular.
By order of the Board
Columbia Threadneedle Investment Business Limited
Secretary
2 April 2025
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Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Company’s strategy, operations and compliance with regulations. The
Manager is the Company’s AIFM.
Articles of association
The Company’s articles of association may only be amended by
special resolution at general meetings of Shareholders.
The Board
The Board of the Company is entirely non-executive. The Company
has no employees. A management contract between the Company
and the Manager sets out the matters over which the Manager
has authority and the limits above which Board approval must
be sought. All other matters, including strategy, investment and
dividend policies, gearing, and corporate governance procedures
are reserved for the approval of the Board. With regard to these
matters it is the responsibility of the Board to provide the Manager
with general instruction and guidance. It is the responsibility of the
Manager to act and manage the Company in accordance with these
general directives and to report to the Board upon its corporate
management.
During the period the performance of the Board, committees and
individual Directors was evaluated through a discussion process
led by the Chair. The performance of the Chair was evaluated by the
other Directors.
Amongst other considerations, the performance evaluation
considered the balance of skills and diversity of the Board, as well
as the Board’s overall effectiveness. The Board believes it has an
appropriate balance of skills and experience, length of service and
knowledge of the Company. The Board does not consider that the
use of external consultants to conduct this evaluation is likely to
provide any meaningful advantage over the process adopted. The
option is, however, kept under review.
The table on page 44 sets out the number of scheduled Board and
Committee meetings held during the year ended 31 December 2024
and the number of meetings attended by each Director.
The Board also held a strategy meeting and four committee
meetings during the year.
Introduction
The Company adheres to the principles and recommendations
of the revised AIC Code of the Corporate Governance (the “AIC
Code”) published in 2019.
The Board believes that the Company has complied with the current
recommendations of the AIC Code during the year under review and
up to the date of this report and, except as regards the provisions
set out below, has thereby complied with the relevant provisions
of the 2018 revision to the UK Corporate Governance Code (“UK
Code”):
The UK Code includes provisions relating to:
• the role of the chief executive;
• executive directors’ remuneration; and
• the need for an internal audit function.
For the reasons set out in the AIC Corporate Governance Guide for
Investment Companies, the Board considers these provisions as
not being relevant to the Company, as it is an externally managed
investment company. In particular, all of the Company’s day-to-day
management and administrative functions have been delegated to
the Manager. As a result, the Company has no executive Directors,
employees or internal operations. Therefore, with the exception
of the need for an internal audit function, which is addressed on
page 52, the Company has not reported further in respect of these
provisions.
Detailed information on the Directors’ remuneration can be found in
the Directors’ Remuneration Report on pages 48 to 50 and in note 7
to the accounts.
Copies of both codes may be found on the respective websites
theaic.co.uk and frc.org.uk.
AIFMD
The Company is defined as an Alternative Investment Fund (“AIF”)
under the AIFMD issued by the European Parliament, and which
has been implemented into UK law. This requires that all AIFs must
appoint a Depositary and an Alternative Investment Fund Manager
(“AIFM”). The Board remains fully responsible for all aspects of the
Corporate Governance Statement
44 | European Assets Trust PLC
Individual Directors may, at the expense of the Company, seek
independent professional advice on any matter that concerns them
in the furtherance of their duties. No such advice was sought during
the period. The Company maintains appropriate Directors’ and
Officers’ liability insurance and has granted deeds of indemnity to
the Directors in respect of liabilities that may attach to them in their
capacity as Directors of the Company.
The Board receives full information on the Company’s investment
performance, assets, liabilities and other relevant information in
advance of Board meetings. The Board has direct access to the
company secretarial advice and services provided by the Manager.
The proceedings at all Board meetings are recorded in the minutes.
The Board has the power to appoint or remove the Company
Secretary.
Appointments and Succession Planning
The Board has established a Remuneration and Nomination
Committee. This committee is responsible for the review of the
re-appointment of Directors, as they fall due for re-election and to
make recommendations to the Board.
In order to comply with the spirit of the Code, the Directors consider
that their period of office commenced with their appointment to the
Board of European Assets Trust NV, the Company’s predecessor.
In addition, this committee is responsible for making
recommendations to the Board regarding the nomination of additional
Directors, where appropriate, for approval by the General Meeting of
Shareholders.
In accordance with the AIC Code all Directors are subject to annual
re-election at each AGM. Following the evaluation process set on
page 43, the Board confirms that the performances of all Directors
continues to be effective and demonstrates commitment to the role.
The Board therefore believes that it is in the interest of Shareholders
that all Directors seeking election or re-election be elected or re-
elected.
Appointments of all new Directors are made on a formal basis
using professional search consultants, with the Board agreeing
the selection criteria and the method of selection, recruitment and
appointment. A Director role specification is prepared to assist with
this process. Each appointment is subject to Shareholder approval at
the subsequent AGM.
The length of tenure of the Chair is determined by the UK Code’s
nine-year limit subject to the AIC Code derogation. Factors that will be
considered include board rotation and retention of experience. The
Board has an agreed succession plan for the orderly retirement of
existing directors and to provide for the regular refreshment of skills
and talent. Regular retirements of Directors will take place ensuring that
the Company complies with both the letter and spirit of the AIC Code.
As part of an orderly succession plan and following thorough
selection processes which included the services of Fletcher Jones,
a search company which has no connection to the Company or
an individual director, Monica Tepes was appointed to the Board
with effect from 7 February 2025. As a further part of this plan, it
is anticipated that Martin Breuer will retire from the Board at the
conclusion of the Company’s AGM to be held on 24 June 2025
having served nine years.
Director attendance – year ended 31 December 2024
Year ended
31 December 2024
Board meetings
of Directors
Audit and Risk
Committee Meetings
Remuneration and Nomination
Committee Meetings
Management Engagement
Committee Meetings
Held Attended Held Attended Held Attended Held Attended
Martin Breuer
5
5
2
2
2
2
1
1
Kate Cornish-Bowden
(1)
5
5
2
2
2
2
1
1
Stuart Paterson
5
5
2
2
2
2
1
1
Kevin Troup
5
5
2
2
2
2
1
1
Pui Kei Yuen
5
5
2
2
2
2
1
1
Monica Tepes
(2)
N/A N/A N/A N/A N/A N/A N/A N/A
Julia Bond OBE
(3)
1
1
–
–
–
–
–
–
Jack Perry CBE
(4)
3
3
1
1
1
1
1
1
(1) Kate Cornish-Bowden was appointed to the Board on 2 January 2024.
(2) Monica Tepes was appointed to the Board on 7 February 2025.
(3) Julia Bond retired from the Board on 31 January 2024.
(4)
Jack Perry retired from the Board on 17 May 2024.
Report and Accounts 2024 | 45
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Full details of the duties of a Director are provided at the time
of their appointment. An induction process takes place for
new appointees, who meet the Investment Manager, Company
Secretary and other key employees of the Manager and are given
briefings on the workings and processes of the Company.
Directors are encouraged to attend relevant training courses
and seminars and receive regular updates on the industry and
changes to regulation from external advisors and the Company
Secretary.
Independence of Directors
All Directors are considered by the Board to be independent of the
Manager. The Board does not consider that a Director’s tenure or
other board memberships necessarily reduces his or her ability to
act independently and, following performance evaluations, believes
that each Director is independent in character and judgement and
that continuity and experience add to the strength of the Board.
Board committees
The Board has appointed committees with sufficient expertise, in
accordance with the AIC Code in order to increase the efficiency of
the Board’s work. The respective chairs of the committees report
to the Board on the work of the committees. The Company has
established an Audit and Risk Committee, a Remuneration and
Nomination Committee and a Management Engagement Committee.
Audit and Risk Committee
The Company has established an Audit and Risk Committee. Until
17 May 2024, the Audit and Risk Committee was chaired by Stuart
Paterson. Following the appointment of Stuart Paterson, at the
conclusion of the AGM on that date, as the Company’s Chair, Kevin
Troup was appointed Chair of the Audit and Risk Committee. The
Audit and Risk Committee is comprised of all the independent
members of the Board with the exception of the Chair of the
Company who is not a member of the Committee but can attend as
an observer. The Audit and Risk Committee meets at least twice a
year. The Board considers that the members of the Audit and Risk
Committee have the requisite skills and experience to fulfil the
responsibilities of the Audit and Risk Committee. The Audit and Risk
Committee is responsible for ensuring that the financial performance
of the Company is properly reported on and monitored and provides
a forum through which the Company’s external auditors may report to
the Board. The Audit and Risk Committee reviews and recommends
to the Board on the annual and half yearly reports and financial
statements, financial announcements, internal control systems and
procedures and accounting policies of the Company.
The Report of the Audit and Risk Committee is contained on pages
51 and 52.
Management Engagement Committee
The Company has established a Management Engagement
Committee and consists of all the independent members of the
Board. The Management Engagement Committee meets at least
once a year and its principal duties are to review the terms and
conditions of the appointment of the Manager and other significant
service providers including the Depositary and Custodian, corporate
broker, administrator and legal counsel. Full consideration is given to
the quality and value of the service received and recommendations
are made to the Board on the appropriateness of all continuing
appointments.
The Report of Management Engagement Committee is contained on
page 53.
Remuneration and Nomination Committee
The Company has established a Remuneration and Nomination
Committee, which is chaired by the Senior Independent Director,
and consists of all the independent members of the Board. Until her
retirement on 31 January 2024, the Remuneration and Nomination
Committee was chaired by Julia Bond. Following the retirement of
Julia Bond, Kate Cornish-Bowden was appointed Senior Independent
Director and therefore Chair of this committee. The Remuneration
and Nomination Committee meets at least once a year.
The Report of the Remuneration and Nomination Committee on page
47 includes details of its duties.
Conflicts of interest
A company director has a statutory obligation to avoid a situation
in which he or she has, or potentially could have, a direct or
indirect interest that conflicts with the interests of the Company (a
“situational conflict”). The Board therefore has procedures in place
for the authorisation and review of situational conflicts relating to the
Company’s Directors.
Other than the formal authorisation of the Directors’ other
directorships and appointments, no authorisations have been
sought.
Aside from situational conflicts, the Directors must also comply
with the statutory rules requiring company directors to declare any
interest in an actual or proposed transaction or arrangement with the
Company. In the year under review there have been no instances of a
Director being required to be excluded from a discussion or abstain
from voting because of a conflict of interest.
Relations with Shareholders
The Company welcomes the views of Shareholders and places
importance on communication with its members. The Managers hold
46 | European Assets Trust PLC
meetings with the Company’s largest Shareholders and report back
to the Board on these meetings. Each year, the Company will hold an
AGM to be followed by a presentation by the investment manager in
London.
In accordance with the UK Code, in the event that when votes of 20
per cent or more have been cast against a resolution at a General
Meeting the Company will announce the actions it intends to take to
consult Shareholders to understand the reasons behind the result.
A further update will be published within six months. No such votes
were received during 2024.
Shareholders wishing to communicate with the Chair or other
members of the Board may do so by writing to European Assets Trust
PLC, 6th Floor, Quartermile 4, 7a Nightingale Way, Edinburgh EH3
9EG.
By order of the Board
Columbia Threadneedle Investment Business Limited
Secretary
2 April 2025
Report and Accounts 2024 | 47
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Diversity
The Board’s diversity policy, objective and progress in achieving it
are set out on page 25.
Committee evaluation
The activities of the Committee were considered as part of the Board
appraisal process completed in accordance with standard governance
arrangements as summarised on page 43. The conclusion from the
process was that the Committee was operating effectively, with the
right balance of membership, experience and skills.
Kate Cornish-Bowden
Remuneration and Nomination Committee Chairman
2 April 2025
Role of the Committee
The Committee met twice during the year. The duties of the
Remuneration and Nomination Committee are:
• To periodically review the level of Directors’ fees and recommend
any changes to the Board;
• The annual Board evaluation process;
• To be responsible for reviewing and making recommendations
to the Board regarding nominating candidates for the approval
by the General Meeting of Shareholders to fill vacancies on the
Board of Directors;
• To consider and review the composition and balance of the
Board from time to time and, where appropriate, to make
recommendations to the Board;
• To review the re-appointment of Directors, as they fall due
for re-election, under the terms of the Articles, and to make
recommendations to the Board as considered appropriate;
• To review actual or possible conflicts of interest in respect of
each Director and any authorised conflicts; and
• To consider other relevant topics, as defined by the Board.
Composition of the Committee
All the Directors are members of the Committee the terms of
reference of which can be found on the website at
www.europeanassets.co.uk. The Committee is chaired by the Senior
Independent Director. Following the retirement of Julia Bond, Kate
Cornish-Bowden was appointed Senior Independent Director and
therefore Chair of the Committee.
Succession planning
Appointments of all new Directors are made on a formal basis,
normally using professional search consultants, with the Remuneration
and Nomination Committee agreeing the selection criteria and the
method of recruitment, selection and appointment.
The Board has an agreed succession plan for the orderly retirement of
existing Directors and to provide for the regular refreshment of skills
and talent. Details of recent and forthcoming Board and Committee
membership changes arising from this succession plan are provided
on page 27.
Report of the Remuneration and
Nomination Committee
48 | European Assets Trust PLC
This policy was last approved by Shareholders at the AGM held
in May 2023 with 89.7% voting in favour and 10.3% against. The
policy is subject to approval by the Shareholders every three years.
There have been no changes to the policy since this last approval
and it is intended that it will continue until the AGM in 2026.
The policy will next be put to Shareholders for approval at the
Company’s 2026 AGM. The Board has not received any views from
Shareholders in respect of the levels of Director’s remuneration.
The Company’s articles of association limit the aggregate fees
payable to the Board to a total of £500,000 per annum. The
Remuneration and Nomination Committee considers the level of
Directors’ fees at least annually. The Committee receives details
of the fees paid to directors of commensurate companies. The
Committee will then recommend to the Board a proposal for its
approval.
The fees are fixed and are payable in cash, quarterly in arrears.
Introduction
This Directors’ remuneration report covers the year ended
31 December 2024.
Directors’ Remuneration Policy
The Board’s policy is to set Directors’ remuneration at a level
commensurate with the skills and experience necessary for
the effective stewardship of the Company and the expected
contribution of the Board as a whole in continuing to achieve the
investment objective. The policy aims to be fair and reasonable in
relation to comparable investment trusts and other similar sized
financial companies. Time committed to the Company’s affairs
and the role that individual Directors fulfil in respect of Board and
committee responsibilities are taken into account. The policy also
provides for the Company’s reimbursement of all reasonable travel
and associated expenses incurred by the Directors in attending
Board and committee meetings, including those treated as a
benefit in kind subject to tax and national insurance. The Directors
are not eligible for pension benefits, share options, long-term
incentive schemes or other benefits.
Directors’ Remuneration Report
Fees for services to the Company for the year ended 31 December 2024 (audited)
Fees
(audited)
Taxable Benefits
(1)
(audited)
Total
(audited)
Fees
(unaudited)
Director
2024
£
2023
£
2024
£
2023
£
2024
£
2023
£
2025
£
Jack Perry CBE
(2)
18,310 47,563 5,304 4,647 23,614 52,210 n/a
Stuart Paterson 44,925 37,688 8,893 3,174 53,818 40,862 49,000
Kevin Troup
(3)
36,562 20,233 8,059 3,818 44,621 24,051 38,750
Kate Cornish-Bowden
(4)
36,691 n/a 1,635 n/a 38,326 n/a 37,750
Julia Bond OBE
(5)
3,142 36,688 – 69 3,142 36,757 n/a
Martin Breuer 33,313 32,438 7,197 6,312 40,510 38,750 16,200
Pui Kei Yuen 33,313 32,438 1,596 – 34,909 32,438 33,500
Monica Tepes
(6)
n/a n/a n/a n/a n/a n/a 30,000
Total 206,256 207,048 32,684 18,020 238,940 225,068 205,200
(1) Comprises expenses incurred by the Company when Directors are carrying out its business. These expenses are subsequently grossed up for the respective
Directors’ marginal rate of income tax and national insurance contributions.
(2) Retired 17 May 2024
(3) Appointed 19 May 2023.
(4) Appointed 2 January 2024.
(5) Retired 31 January 2024.
(6) Appointed 7 February 2025.
Report and Accounts 2024 | 49
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Following the latest review held during March 2025, the Board
agreed that the levels of Director remuneration would remain
unchanged for the forthcoming year.
The Board is composed solely of non-executive Directors, none of
whom has a service contract with the Company. Each new Director
is provided with a letter of appointment. There is no provision for
compensation upon early termination of appointment. In normal
circumstances these letters of appointment are available for
inspection at the Company’s registered office during business
hours and will be available for 15 minutes before and during the
forthcoming AGM.
Each Director’s appointment is subject to election at the first AGM
and continues thereafter subject to re-election at each subsequent
AGM. All the Directors with the exception of Martin Breuer will
stand for election or re-election at the AGM to be held on 24 June
2025. It is anticipated that Martin Breuer will retire from the Board
at the conclusion of the forthcoming AGM.
Annual percentage change
The table below sets out the annual percentage change in fees for
each director who served in the year under review.
Annual percentage change
Director
2024
(audited)
2023
(audited)
2022
(audited)
2021
(audited)
Jack Perry CBE
-61.5
(1)
+3.8 +3.2 +0.9
Stuart Paterson
+19.2
(2)
+3.5 +3.2 +6.3
Kevin Troup
+80.7
(3)
n/a n/a n/a
Kate Cornish-Bowden
n/a
(4)
n/a n/a n/a
Julia Bond OBE
-91.4
(5)
+3.6 +3.2 +0.9
Martin Breuer
+2.7 +4.0 +3.2 +0.8
Pui Kei Yuen
+2.7 +4.0 +22.3
(6)
n/a
(1) Retired 17 May 2024
(2) Appointed as a Chair on 17 May 2024, increase reflects the change in
position held.
(3) Appointed as a non-executive Director on 19 May 2023 and Audit and Risk
Committee Chair with effect from 17 May 2024. Increase reflects the first full
year with the Company and change in position held.
(4) Appointed as a non-executive Director on 2 January 2024 and Senior
Independent Director with effect from 6 March 2024.
(5) Retired 31 January 2024
(6) Appointed as a Director with effect from 26 February 2021, increase reflects
the first full year with the Company.
Policy implementation
The Directors’ Remuneration Report is subject to an annual
advisory vote and therefore an ordinary resolution for its approval
will be put to Shareholders at the forthcoming AGM. The results of
this vote is made available on the Company’s website as soon as
practicably possible afterwards.
At the AGM held on 17 May 2024 Shareholders approved the
Directors’ Remuneration Report in respect of the year ended
31 December 2023. 92.8% of votes were cast in favour of the
resolution and 7.2% against.
Directors’ remuneration for the year
The Directors who served during the year received remuneration at
the following annualised rates for services as non-executive Directors.
Directors can expect to receive fees at the rates indicated for 2025 as
well as reimbursement for expenses necessarily incurred.
The fees for specific responsibilities are set out below.
Annual fee rates for Board Responsibilities
With effect
from 1 April
2025
£
With effect
from 1 April
2024
£
Chairman 49,000 49,000
Chairman of the Audit and Risk Committee 38,750 38,750
Senior Independent Director 37,750 37,750
Non-executive Director 33,500 33,500
Directors’ share interests (audited)
31 December 2024 31 December 2023
Number of shares held Number of shares held
Stuart Paterson 120,000 120,000
Martin Breuer 121,000 121,000
Kate Cornish-Bowden
(1)
90,000 N/A
Kevin Troup 41,000 20,000
Pui Kei Yuen 17,700 17,700
(1) Appointed to the Board on 2 January 2024.
Following her appointment on 7 February 2025, Monica Tepes
purchased 10,000 shares.
Directors are encouraged but not required to hold shares in the
Company.
Relative importance of spending on pay
The table on page 50 shows the actual expenditure in relation to
Board remuneration, other expenses, Shareholder dividends and
31 December Net Asset Value:
50 | European Assets Trust PLC
Share Price Total Return Performance
(In sterling terms, rebased to 100 at 31 December 2014)
Relative importance of spending on pay
2024
£’000s
2023
£’000s
%
Change
Aggregate Board remuneration (excluding
taxable benefits)
206 207 -0.5
Management and other expenses
3,545 3,572 -0.8
Dividends paid to Shareholders
21,244 20,884 +1.7
Net Asset Value
330,609 353,996 -6.6
Company performance
The Board is responsible for the Company’s investment strategy
and performance. The management of the investment portfolio
is delegated to the Manager. An explanation of the performance
of the Company is given in the Chair’s Statement and Investment
Manager’s Review. A comparison of the Company’s performance over
the ten-year period required by the Companies Act is set out in the
following graph. This shows the total return (assuming all dividends
are re-invested) on Ordinary Shares against the Benchmark.
2014 2015 2016 2017 2018 20232019 2020 2021 2022
Benchmark Index Total Return (Sterling)
(2)
European Assets Trust
(1)
Source: Reuters Eikon
100
120
140
160
180
200
220
240
260
280
2024
On behalf of the Board
Stuart Paterson
Chair
2 April 2025
(1) European Assets Trust NV prior to migration on 16 March 2019.
(2) At 1 April 2021 the Benchmark changed from EMIX Smaller European
Companies (ex UK) Index (gross) to EMIX Smaller European Companies (ex UK)
Index (net). With effect from 1 June 2023 the Benchmark changed from EMIX
Smaller European Companies (ex UK) Index (net) to MSCI Europe excluding
United Kingdom Small Mid Cap (Net Return) Index. A time apportioned
composite of each indices has therefore been calculated and disclosed.
Report and Accounts 2024 | 51
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
The Audit and Risk Committee met on two occasions during
the year and the attendance of each of the members is set out
on page 44. In the course of its duties, the committee had direct
access to the auditor and senior members of the Manager’s fund
management and investment trust teams. Amongst other things,
the Audit and Risk Committee considered and reviewed the following
matters and reported thereon to the Board:
• The annual results announcements, and annual and half-yearly
reports and accounts;
• The accounting policies of the Company;
• The principal risks faced by the Company and the effectiveness
of the Company’s internal control environment;
• The effectiveness of the audit process and related non-audit
services and the independence and objectivity of the auditor, their
re-appointment, remuneration and terms of engagement;
• The policy on the engagement of the auditors to supply non-audit
services;
• The implications of proposed new accounting standards and
regulatory changes;
• The receipt of an internal controls report from the Manager and
key suppliers; and
• Whether the Annual Report and Accounts is fair, balanced and
understandable.
Composition of the Committee
Until 17 May 2024, the Audit and Risk Committee was chaired by
Stuart Paterson. Following his appointment, at the conclusion of the
AGM on that date as the Company’s Chair, Kevin Troup was appointed
Chair of the Audit and Risk Committee. The Audit and Risk Committee
is composed of all of the independent members of the Board with the
exception of the Chair of the Company who is not a member of the
Committee but can attend as an observer.
Duties of the Committee
The duties of the committee include reviewing the annual and
interim accounts, the system of internal controls, risk management,
and the terms of appointment and remuneration of the auditors,
PricewaterhouseCoopers LLP (‘PwC’), including its independence and
objectivity. It is also the forum through which the auditors’ report to
the Board of Directors. The terms of reference of the Audit and Risk
Committee can be found on the website at www.europeanassets.co.uk.
The committee meets at least twice-yearly including at least one
meeting with the auditors.
Report of the Audit and Risk Committee
Significant issues considered by the Audit and Risk Committee for the year ended 31 December 2024
Matter Action
Existence and valuation of investments
The Company’s portfolio is invested
in listed securities. Errors in valuation
could have a material impact on the
Company’s net asset value per share.
The Board reviews the full portfolio valuation at each Board meeting and receives quarterly reports
from the AIF Manager and the Depositary.
The Board receives at each Board meeting analysis from the investment managers reviewing the
liquidity of the portfolio.
Appropriateness of viability assessment
The Company discloses a viability
assessment and statement in
accordance with the requirements of the
UK Corporate Governance Code.
Mindful of the guidance issued by the Financial Reporting Council, when assessing viability, the
Company’s cash position, availability of the loan facility and the operational resilience of its service
providers were considered. Further analysis of the five-year viability assessment and the application
of the going concern principle are detailed on page 38 and note 23 to the financial statements.
Effectiveness of internal control environment
On an annual basis the Audit and Risk
Committee considers the Company’s
internal control environment.
The Audit and Risk Committee meeting considered the control reports and written assurances
received from the Manager and third party service providers with regard to the operation of internal
controls during the year ended 31 December 2024.
52 | European Assets Trust PLC
Company that include the key functions and activities carried out by
the Manager and other service providers, the risks associated with
these functions and activities and the controls employed to minimise
these risks. These functions and activities include the financial
reporting process. A residual risk rating is then applied. The matrix is
regularly updated and reviewed by the committee and the Board.
A formal annual review of these procedures is carried out by
the Audit and Risk Committee and includes consideration of internal
control reports issued by the Manager and other service providers.
Such review procedures have been in place throughout the financial
year and up to the date of approval of the annual report, and
the Board is satisfied with their effectiveness. These procedures
are designed to manage rather than eliminate risk and, by their
nature, can only provide reasonable, but not absolute, assurance
against material misstatement or loss. At each Board meeting the
Board monitors the investment performance of the Company in
comparison to its stated objective, its peer group and its Benchmark
index. The Board also reviews the Company’s activities since the
previous Board meeting to ensure that the Manager adheres to
the agreed investment policy and approved investment guidelines.
The Depositary carries out daily independent checks on cost and
investment transactions, annually verifies asset ownership and has
strict liability for the loss of the Company’s financial assets in respect
of which it has safe keeping duties.
The Board has reviewed the need for an internal audit function.
It has decided that the systems and procedures employed by the
Manager, including its own internal audit function, provide sufficient
assurance that a sound system of internal control, which safeguards
Shareholders’ investments and the Company’s assets, is maintained.
An internal audit function specific to the Company is therefore
considered unnecessary but this decision will be kept under review.
Kevin Troup
Chair of the Audit and Risk Committee
2 April 2025
As part of its review of the scope and results of the audit, during
the year the Audit and Risk Committee considered and approved
the auditor’s plan for the audit of the financial statements for the
year ended 31 December 2024. At the conclusion of the audit, the
auditor did not highlight any issues to the Audit and Risk Committee
which would cause it to qualify its audit report nor did it highlight any
fundamental internal control weaknesses. The auditors issued an
unqualified audit report which is included on pages 55 to 60.
Following the implementation of the Statutory Audit Amending
Disclosure, with effect from 1 January 2017, the auditors are unable
to provide tax compliance and advisory services to the Company.
As part of the review of auditor independence and effectiveness,
PwC has confirmed that it is independent of the Company and has
complied with relevant auditing standards. In evaluating the auditors,
the Audit and Risk Committee has taken into consideration the
standing, skills and experience of the firm and the audit team. In
addition, the Audit and Risk Committee reviewed the FRC’s Audit
and Quality review for PwC and discussed the findings with the
Company’s audit partner to determine if any of the indicators in the
report had specific relevance to this year’s audit of the Company.
The Audit and Risk Committee discussed the audit plan and PwC’s
final report and concluded that an effective external audit had
been conducted. PwC Netherlands was appointed auditors to the
Company’s predecessor, European Assets Trust NV, on 24 April 2014.
PricewaterhouseCoopers LLP UK was appointed auditors to the
Company on 17 May 2019. The Company is not required to tender
for auditors at least until after the audit in respect of the year ended
31 December 2029. It is the current intention of the Audit and Risk
Committee not to tender for the audit until then. The Audit and Risk
Committee, from direct observation and enquiry of the Manager,
remains satisfied that the auditor continues to provide effective
independent challenge in carrying out its responsibilities. Following
professional guidelines, the audit partner rotates after five years.
The current audit partner, Jennifer March, is in the fourth year of her
appointment. On the basis of this assessment, the Audit and Risk
Committee has recommended the continuing appointment of the
auditor to the Board. The auditors’ performance will continue to be
reviewed annually taking into account all relevant guidance and best
practice.
Internal Control
The Board is responsible for the Company’s system of internal
control and for reviewing its effectiveness. The Board has therefore
established an ongoing process designed to meet the particular
needs of the Company in managing the risks to which it is exposed.
The process is based principally on the Manager’s existing risk-based
approach to internal control whereby a matrix is created for the
Report and Accounts 2024 | 53
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Governance Report
Report of the Management
Engagement Committee
Duties of the Committee
The duties of the Management Engagement Committee are to
review the terms and conditions of the appointment and the
appropriateness of the continuing appointment of:
• The Manager,
• Other significant service providers including the Depositary
and Custodian, corporate broker, administrator and legal
counsel.
The Management Engagement Committee also reviews the fees
paid during the year to all of the Company’s service providers.
Composition of the Committee
The Management Engagement Committee is appointed by the
Board from amongst the Board Directors of the Company. A quorum
is two members.
The Chair of the Management Engagement Committee is the Chair
of the Board.
Until his retirement as Chair of the Company on 17 May 2024,
Jack Perry was Chair of the Committee. Following the retirement
of Jack Perry at the conclusion of the AGM held on 17 May 2024,
Stuart Paterson was appointed Chair of the Company and the
Management Engagement Committee.
All members of the Board have been appointed to the Management
Engagement Committee.
The terms of reference of the Management Engagement Committee
are available on the Company’s website www.europeanassets.co.uk.
The Manager’s Evaluation Process
The Committee meets annually. Its most recent meeting was March
2025 which included a formal evaluation of the performance and
remuneration of the Manager. At each Board meeting throughout
the year the performance of the Company is reviewed. The Board
receives detailed papers, reports and reviews from the Manager
on performance at each regular Board meeting. These papers
include details of portfolio attribution, asset and sector allocation,
gearing and risk. These enable the Board to assess the success or
failure of the Manager’s performance against the Key Performance
Indicators determined by the Board.
The Manager’s Re-appointment
During March 2025, the Management Engagement Committee
of the Board reviewed the appropriateness of the Manager’s continuing
appointment. In carrying out the review, consideration was given to
past investment performance and the ability of the Manager to produce
satisfactory investment performance in the future. Consideration was
also given to the standard of other services provided which include
company secretarial, accounting, administration and marketing. The
length of notice of the investment management contract and fees
payable to the Manager were also reviewed.
Following this review, it is the Board’s opinion that the continuing
appointment of the Manager on the terms agreed is in the interests
of Shareholders as a whole.
The Manager’s Fee
An important responsibility of the Committee is the review
of the Manager’s fee. On 2 May 2024 the Board announced
an amendment to the basis of calculation of the investment
management fee payable to the Manager. Details of the revised
investment management fee are included in note 5 to the Accounts.
At each annual Committee meeting the Directors compare the basis
of the remuneration of the Manager against that of the peer group.
Service providers
At each meeting of the Committee the Directors consider the
remuneration, quality of service provided and value for money
received from each of the key service providers of the Company.
Reporting Procedures
The Secretary circulates the minutes of meetings of the
Management Engagement Committee to all members of the Board
at the next Board meeting following a Management Engagement
Committee Meeting.
A member of the Management Engagement Committee attends
the Annual General Meeting and is available to answer questions
on the Management Engagement Committee’s activities and
responsibilities.
Stuart Paterson
Chair
2 April 2025
54 | European Assets Trust PLC
Directors’ confirmations
Each of the Directors, whose names and functions are listed on
pages 34 and 35 confirm that, to the best of their knowledge:
• the Company financial statements, which have been prepared
in accordance with UK-adopted International Accounting
Standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Company;
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the
Company, together with a description of the principal risks and
uncertainties that it faces; and
• the annual report and financial statements, taken as a
whole, are fair, balanced and understandable and provide
the information necessary for Shareholders to assess the
Company’s position and performance, business model and
strategy.
In the case of each Director in office at the date the Directors’
report is approved:
• so far as the Director is aware, there is no relevant audit
information of which the Company’s Auditors are unaware; and
• they have taken all the steps that they ought to have taken as
a director in order to make themselves aware of any relevant
audit information and to establish that the Company’s Auditors
are aware of that information.
On behalf of the Board
Stuart Paterson
Chair
2 April 2025
The Directors are responsible for preparing the Report and
Accounts and the financial statements in accordance with
applicable law and regulation.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law the Directors
have prepared the financial statements in accordance with UK-
adopted International Accounting Standards.
Under company law, Directors must not approve the financial
statements unless they are satisfied that they give a true and
fair view of the state of affairs of the Company and of the profit
or loss of the Company for that period. In preparing the financial
statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• state whether applicable UK-adopted International
Accounting Standards have been followed, subject to any
material departures disclosed and explained in the financial
statements;
• make judgements and accounting estimates that are
reasonable and prudent; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Directors are also responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements and the Directors’ Remuneration Report
comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity
of the Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Statement of Directors’ Responsibilities
in Respect of the Financial Statements
Report and Accounts 2024 | 55
Independent Auditors’ Report
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Other Information
Chair’s StatementOverview Auditors’ Report
Independent auditors’ report to the
members of European Assets Trust PLC
Our audit approach
Overview
Audit scope
• The Company is a standalone Investment Trust Company and
engages Columbia Threadneedle Investment Business Limited
(the “Manager”) to manage its assets.
• We conducted our audit of the financial statements using
information from State Street Bank & Trust Company (the
“Administrator”) to whom the Manager has delegated the
provision of certain administrative functions.
• We tailored the scope of our audit taking into account the
types of investments within the Company, the involvement of
the third parties referred to above, the accounting processes
and controls, and the industry in which the Company operates.
• We obtained an understanding of the control environment in
place at both the Manager and the Administrator and adopted
a fully substantive testing approach using reports obtained
from the Administrator.
Key audit matters
• Valuation and existence of investments
• Accuracy, occurrence and completeness of income from
investments.
Materiality
• Overall materiality: £3,306,090 (2023: £3,539,960) based on
1% of Net Asset Value (NAV).
• Performance materiality: £2,479,568 (2023: 2,654,970).
The scope of our audit
As part of designing our audit, we determined materiality and
assessed the risks of material misstatement in the financial
statements.
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the audit of
the financial statements of the current period and include the most
significant assessed risks of material misstatement (whether or not
due to fraud) identified by the auditors, including those which had
Opinion
In our opinion, European Assets Trust PLC’s financial statements:
• give a true and fair view of the state of the Company’s affairs
as at 31 December 2024 and of its profit and cash flows for
the year then ended;
• have been properly prepared in accordance with UK-adopted
International Accounting Standards; and
• have been prepared in accordance with the requirements of the
Companies Act 2006.
We have audited the financial statements, included within the
Report and Accounts 2024 (the “Annual Report”), which comprise:
the Statement of Financial Position as at 31 December 2024; the
Statement of Comprehensive Income, the Statement of Changes in
Equity and the Statement of Cash Flows for the year then ended;
and the notes to the financial statements, comprising material
accounting policy information and other explanatory information.
Our opinion is consistent with our reporting to the Audit and Risk
Committee.
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
under ISAs (UK) are further described in the Auditors’ responsibilities
for the audit of the financial statements section of our report. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We remained independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the financial
statements in the UK, which includes the FRC’s Ethical Standard, as
applicable to listed public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit
services prohibited by the FRC’s Ethical Standard were not provided.
We have provided no non-audit services to the Company in the
period under audit.
Report on the audit of the financial statements
56 | European Assets Trust PLC
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed
enough work to be able to give an opinion on the financial
statements as a whole, taking into account the structure of the
Company, the accounting processes and controls, and the industry
in which it operates.
The Company’s accounting is delegated to the Administrator
who maintains the Company’s accounting records and who has
implemented controls over those accounting records. We obtained
our audit evidence from substantive tests. However, as part of
our risk assessment, we understood and assessed the internal
controls in place at both the Manager and the Administrator to
the extent relevant to our audit. This assessment of the operating
and accounting structure in place at both organisations involved
obtaining and analysing the relevant controls reports issued by the
independent service auditor of the Manager and the Administrator
in accordance with generally accepted assurance standards for
the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement
team. These matters, and any comments we make on the results of
our procedures thereon, were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How the scope of our audit addressed the key audit matter
Valuation and existence of investments
Refer to the Report of the Audit and Risk Committee, Note 2 Accounting
Policies (d) Financial instruments and Note 12 Investments held at fair
value through profit or loss.
The investment portfolio at the year-end comprised listed equity
investments valued at £345m.
We focused on the valuation and existence of investments because
investments represent the principal element of the net asset value as
disclosed on the Statement of Financial Position.
Our audit work on the valuation and existence of investments included the following:
• We tested the valuation of 100% of the listed equity investments by agreeing the
prices used in the valuation to independent third-party sources; and,
• We tested the existence of the entire investment portfolio by agreeing investment
holdings to an independent custodian confirmation.
Based on the results of the audit procedures performed we are satisfied that the equity
investments exist and that the valuation of the equity investments is not materially
misstated.
Accuracy, occurrence and completeness of income from
investments.
Refer to the Report of the Audit and Risk Committee, Note 2 Accounting
policies (d) Financial instruments, Note 3 Income and Note 12
Investments held at fair value through profit or loss.
ISAs (UK) presume there is a risk of fraud in income recognition because
of the pressure management may feel to achieve a certain objective.
In this instance, we consider that ‘income’ refers to all the Company’s
income streams, both revenue and capital (including gains and losses on
investments).
We focused on the accuracy, completeness and occurrence of dividend
income recognition as incomplete, fictitious or inaccurate income could
have a material impact on the Company’s net asset value and dividend
cover. In addition, the Directors are required to exercise judgement in
determining whether income receivable in the form of special dividends
should be classified as ‘revenue’ or ‘capital’ in the Statement of
Comprehensive Income.
We also focused on the accounting policy for income recognition and its
presentation in the Income Statement as set out in the requirements of
The Association of Investment Companies Statement of Recommended
Practice (the “AIC SORP”) as incorrect application could indicate a
misstatement in income recognition.
We responded to this risk by performing the following audit procedures:
• We obtained an understanding of the processes and controls around income
recognition and classification of special dividends by reviewing the internal
controls reports of the Administrator; and,
• We assessed the appropriateness of the classification of special dividends as
revenue or capital by the Directors with reference to publicly available information.
For all dividends recorded by the Company, we performed the following audit procedures:
• We tested the accuracy of dividend income by agreeing the dividend rates from
investments to independent market data;
• We tested occurrence by testing that all dividends recorded in the year had been
declared in the market by investment holdings;
• To test for completeness, we investigated that the appropriate dividends had been
received in the year by reference to independent data of dividends declared for all
investment holdings held within the year.
We have no matters to report as a result of this testing.
We assessed the accounting policy for income recognition for compliance with
accounting standards and the AIC SORP and performed testing to check that income
had been accounted for in accordance with this stated accounting policy.
Report and Accounts 2024 | 57
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Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
such work. Following this assessment, we applied professional
judgement to determine the extent of testing required over each
balance in the financial statements.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to
understand the extent of the potential impact of climate risk on
the Company’s financial statements, and we remained alert when
performing our audit procedures for any indicators of the impact of
climate risk. Our procedures did not identify any material impact as
a result of climate risk on the Company’s financial statements.
Materiality
The scope of our audit was influenced by our application of
materiality. We set certain quantitative thresholds for materiality.
These, together with qualitative considerations, helped us to
determine the scope of our audit and the nature, timing and extent
of our audit procedures on the individual financial statement
line items and disclosures and in evaluating the effect of
misstatements, both individually and in aggregate on the financial
statements as a whole.
Based on our professional judgement, we determined materiality for
the financial statements as a whole as follows:
Overall Company materiality £3,306,090 (2023: £3,539,960).
How we determined it 1% of Net Asset Value (NAV)
Rationale for benchmark applied We have applied this benchmark, which is generally accepted auditing practice for investment trust audits, in
the absence of indicators that an alternative benchmark would be appropriate and because we believe this
provides an appropriate and consistent year-on-year basis for our audit.
We use performance materiality to reduce to an appropriately
low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds overall materiality. Specifically,
we use performance materiality in determining the scope of our
audit and the nature and extent of our testing of account balances,
classes of transactions and disclosures, for example in determining
sample sizes. Our performance materiality was 75% (2021: 75%) of
overall materiality, amounting to £2,479,568 (2023: £2,654,970)
for the Company financial statements.
In determining the performance materiality, we considered a
number of factors - the history of misstatements, risk assessment
and aggregation risk and the effectiveness of controls - and
concluded that an amount in the middle of our normal range was
appropriate.
We agreed with the Audit and Risk Committee that we would report
to them misstatements identified during our audit above £165,305
(2023: £176,998) as well as misstatements below that amount
that, in our view, warranted reporting for qualitative reasons.
Conclusions relating to going concern
Our evaluation of the Directors’ assessment of the Company’s
ability to continue to adopt the going concern basis of accounting
included:
• evaluating the Directors’ updated risk assessment and
considering whether it addressed relevant threats;
• evaluating the Directors’ assessment of potential operational
impacts, considering their consistency with other available
information and our understanding of the business and
assessed the potential impact on the financial statements;
• reviewing the Directors’ assessment of the Company’s
financial position in the context of its ability to meet future
expected operating expenses, their assessment of liquidity
as well as their review of the operational resilience of the
Company and oversight of key third-party service providers;
and,
• assessing the implication of significant reductions in net asset
value as a result of a severe but plausible downside in the
market’s performance on the ongoing ability of the Company to
operate.
58 | European Assets Trust PLC
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Company’s ability to continue as a going concern for a period of
at least twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
However, because not all future events or conditions can be
predicted, this conclusion is not a guarantee as to the Company’s
ability to continue as a going concern.
In relation to the Directors’ reporting on how they have applied the
UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the Directors’ statement in the
financial statements about whether the Directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections of
this report.
Reporting on other information
The other information comprises all of the information in the Annual
Report other than the financial statements and our auditors’ report
thereon. The Directors are responsible for the other information.
Our opinion on the financial statements does not cover the other
information and, accordingly, we do not express an audit opinion or,
except to the extent otherwise explicitly stated in this report, any
form of assurance thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated.
If we identify an apparent material inconsistency or material
misstatement, we are required to perform procedures to conclude
whether there is a material misstatement of the financial
statements or a material misstatement of the other information. If,
based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required
to report that fact. We have nothing to report based on these
responsibilities.
With respect to the Strategic Report and Directors’ Report, we also
considered whether the disclosures required by the UK Companies
Act 2006 have been included.
Based on our work undertaken in the course of the audit, the
Companies Act 2006 requires us also to report certain opinions
and matters as described below.
Strategic Report and Directors’ Report
In our opinion, based on the work undertaken in the course of the
audit, the information given in the Strategic Report and Directors’
Report for the year ended 31 December 2024 is consistent with
the financial statements and has been prepared in accordance with
applicable legal requirements.
In light of the knowledge and understanding of the Company and its
environment obtained in the course of the audit, we did not identify
any material misstatements in the Strategic Report and Directors’
Report.
Directors’ Remuneration
In our opinion, the part of the Directors’ Remuneration Report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the Directors’ statements
in relation to going concern, longer-term viability and that part of
the corporate governance statement relating to the Company’s
compliance with the provisions of the UK Corporate Governance
Code specified for our review. Our additional responsibilities
with respect to the corporate governance statement as other
information are described in the Reporting on other information
section of this report.
Based on the work undertaken as part of our audit, we have
concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial
statements and our knowledge obtained during the audit, and we
have nothing material to add or draw attention to in relation to:
• The Directors’ confirmation that they have carried out a robust
assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those
principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being
managed or mitigated;
• The Directors’ statement in the financial statements about
whether they considered it appropriate to adopt the going
concern basis of accounting in preparing them, and their
identification of any material uncertainties to the Company’s
Report and Accounts 2024 | 59
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Other Information
Chair’s StatementOverview Auditors’ Report
statements in accordance with the applicable framework and for
being satisfied that they give a true and fair view. The Directors
are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible
for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors
either intend to liquidate the Company or to cease operations, or
have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud,
is detailed below.
Based on our understanding of the Company and industry, we
identified that the principal risks of non-compliance with laws
and regulations related to breaches of section 1158 of the
Corporate Tax Act 2010, and we considered the extent to which
non-compliance might have a material effect on the financial
statements. We also considered those laws and regulations
that have a direct impact on the financial statements such as
the requirements of the Companies Act 2006. We evaluated
management’s incentives and opportunities for fraudulent
manipulation of the financial statements (including the risk of
override of controls), and determined that the principal risks were
related to manipulation of dividends income through posting
manual journals within the Company because of the pressure
management may feel to maximise the capital return in line with
the objective of the Company. Audit procedures performed by the
engagement team included:
ability to continue to do so over a period of at least twelve
months from the date of approval of the financial statements;
• The Directors’ explanation as to their assessment of the
Company’s prospects, the period this assessment covers and
why the period is appropriate; and
• The Directors’ statement as to whether they have a
reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall
due over the period of its assessment, including any related
disclosures drawing attention to any necessary qualifications
or assumptions.
Our review of the Directors’ statement regarding the longer-term
viability of the Company was substantially less in scope than
an audit and only consisted of making inquiries and considering
the Directors’ process supporting their statement; checking that
the statement is in alignment with the relevant provisions of the
UK Corporate Governance Code; and considering whether the
statement is consistent with the financial statements and our
knowledge and understanding of the Company and its environment
obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit,
we have concluded that each of the following elements of the
corporate governance statement is materially consistent with the
financial statements and our knowledge obtained during the audit:
• The Directors’ statement that they consider the Annual Report,
taken as a whole, is fair, balanced and understandable,
and provides the information necessary for the members to
assess the Company’s position, performance, business model
and strategy;
• The section of the Annual Report that describes the review
of effectiveness of risk management and internal control
systems; and
• The section of the Annual Report describing the work of the
Audit and Risk Committee.
We have nothing to report in respect of our responsibility to
report when the Directors’ statement relating to the Company’s
compliance with the Code does not properly disclose a departure
from a relevant provision of the Code specified under the Listing
Rules for review by the auditors.
Responsibilities for the financial
statements and the audit
Responsibilities of the Directors for the financial statements
As explained more fully in the Statement of Directors’
Responsibilities in Respect of the Financial Statements, the
Directors are responsible for the preparation of the financial
60 | European Assets Trust PLC
• holding discussions with the Manager and the Audit and Risk
Committee, including consideration of known or suspected
instances of non-compliance with laws and regulation and
fraud;
• understanding the controls implemented by the Manager and
the Administrator designed to prevent and detect irregularities;
• reviewing relevant meeting minutes, including those of the
Audit and Risk Committee;
• assessing the Company’s compliance with the requirements
of section 1158 of the Corporation Tax Act 2010, including
recalculation of numerical aspects of the eligibility conditions;
• identifying and testing journal entries, in particular year-
end journal entries posted by the Administrator during the
preparation of the financial statements; and,
• designing audit procedures to incorporate unpredictability
around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described
above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related
to events and transactions reflected in the financial statements.
Also, the risk of not detecting a material misstatement due to fraud
is higher than the risk of not detecting one resulting from error, as
fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion.
Our audit testing might include testing complete populations of
certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited number
of items for testing, rather than testing complete populations.
We will often seek to target particular items for testing based on
their size or risk characteristics. In other cases, we will use audit
sampling to enable us to draw a conclusion about the population
from which the sample is selected.
A further description of our responsibilities for the audit of the
financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and
only for the Company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other
purpose. We do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if,
in our opinion:
• we have not obtained all the information and explanations we
require for our audit; or
• adequate accounting records have not been kept by the
Company, or returns adequate for our audit have not been
received from branches not visited by us; or
• certain disclosures of Directors’ remuneration specified by law
are not made; or
• the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement with
the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit and Risk Committee,
we were appointed by the members on 17 May 2019 to audit the
financial statements for the year ended 31 December 2019 and
subsequent financial periods. The period of total uninterrupted
engagement is six years, covering the years ended 31 December
2019 to 31 December 2024.
Jennifer March (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
2 April 2025
Report and Accounts 2024 | 61
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
Statement of Comprehensive Income
for the year ended 31 December
Revenue
£’000s
Capital
£’000s
2024
Total
£’000s
Revenue
£’000s
Capital
£’000s
2023
Total
£’000s
12
Gains on investments held at fair value through
profit or loss
– 9,515 9,515 – 32,185 32,185
Foreign exchange (losses)/gains (41) 150 109 2 (17) (15)
3 18
Income 9,029 554 9,583 7,874 – 7,874
5 5
Management fees (521) (2,085) (2,606) (550) (2,200) (2,750)
6 6
Other expenses (1,098) (47) (1,145) (969) (60) (1,029)
Profit before finance costs and taxation 7,369 8,087 15,456 6,357 29,908 36,265
8 8
Finance costs (276) (1,102) (1,378) (141) (564) (705)
Profit before taxation 7,093 6,985 14,078 6,216 29,344 35,560
9 9
Taxation (666) – (666) (672) – (672)
Profit for the year and total comprehensive
income
6,427 6,985 13,412 5,544 29,344 34,888
11 11
Earnings per Ordinary Share (basic and diluted)
– pence
1.78 1.94 3.72 1.54 8.15 9.69
The total column of this statement represents the Company’s Statement of Comprehensive Income, prepared in accordance with UK-adopted International Accounting Standards. The
supplementary revenue return and capital return columns are both prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing operations.
Revenue notes
Capital notes
The accompanying notes on pages 65 to 82 are an integral part of these financial statements.
62 | European Assets Trust PLC
Statement of Changes in Equity
for the year ended 31 December 2024
Notes
Share
capital
£’000s
Distributable
reserve*
£’000s
Capital
reserves*
£’000s
Revenue
reserve*
£’000s
Cumulative
translation
reserve
£’000s
Total
Shareholders’
funds
£’000s
Balance as at 31 December 2023 37,506 281,605 38,015 – (3,130) 353,996
Movement during the year ended 31 December 2024
10
Interim dividends distributed – (14,817) – (6,427) – (21,244)
Total comprehensive income – – 6,985 6,427 – 13,412
Cumulative translation adjustment – – – – (15,555) (15,555)
Balance as at 31 December 2024 37,506 266,788 45,000 – (18,685) 330,609
for the year ended 31 December 2023
Notes
Share
capital
£’000s
Distributable
reserve*
£’000s
Capital
reserves*
£’000s
Revenue
reserve*
£’000s
Cumulative
translation
reserve
£’000s
Total
Shareholders’
funds
£’000s
Balance as at 31 December 2022 37,506 296,945 8,671 – 4,505 347,627
Movement during the year ended 31 December 2023
10
Interim dividends distributed – (15,340) – (5,544) – (20,884)
Total comprehensive income – – 29,344 5,544 – 34,888
Cumulative translation adjustment – – – – (7,635) (7,635)
Balance as at 31 December 2023 37,506 281,605 38,015 – (3,130) 353,996
*These reserves include balances that are distributable by way of dividend, as disclosed in note 2(k).
The accompanying notes on pages 65 to 82 are an integral part of these financial statements.
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Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
Statement of Financial Position
at 31 December
Notes
2024
£’000s
2023
£’000s
Non-current assets
12
Investments at fair value through profit or loss 344,724 375,066
Current assets
13
Other receivables 2,502 3,063
Cash and cash equivalents 12,544 2,089
Total current assets 15,046 5,152
Current liabilities
14
Other payables (223) (226)
15
Bank Loan (28,938) (25,996)
Total current liabilities (29,161) (26,222)
Net current liabilities (14,115) (21,070)
Net assets 330,609 353,996
Capital and reserves
16
Share capital 37,506 37,506
17
Distributable reserve 266,788 281,605
18
Capital reserves 45,000 38,015
18
Revenue reserve – –
Cumulative translation reserve (18,685) (3,130)
Total Shareholders' funds 330,609 353,996
19
Net Asset Value per Ordinary Share - pence 91.82 98.31
The notes on pages 65 to 82 form an integral part of the financial statements.
Approved by the Board and authorised for issue on 2 April 2025 and signed on its behalf of by:
Stuart Paterson, Chair
64 | European Assets Trust PLC
Statement of Cash Flows
for the year ended 31 December
Notes
2024
£’000s
2023
£’000s
20
Cash flows from operating activities before interest and dividends received and interest paid (3,174) (4,328)
Dividends received 9,783 7,388
Interest received 240 321
Interest paid (1,387) (654)
Cash flows from operating activities 5,462 2,727
Investing activities
Purchase of investments (123,311) (138,453)
Sale of investments 145,945 128,176
Other capital expenses (47) (60)
Cash flows from investing activities 22,587 (10,337)
Cash flows before financing activities 28,049 (7,610)
Financing activities
10
Equity dividends distributed (21,244) (20,884)
15, 21
Drawdown of bank loan 4,301 26,293
15, 21
Repayment of bank loan – (8,589)
Cash flows from financing activities (16,943) (3,180)
Net movement in cash and cash equivalents 11,106 (10,790)
Cash and cash equivalents at the beginning of the year 2,089 13,317
Effect of movement in foreign exchange 109 (15)
Translation adjustment (760) (423)
Cash and cash equivalents at the end of the year 12,544 2,089
Represented by:
Cash at bank 26 18
Short term deposits 12,518 2,071
12,544 2,089
The notes on pages 65 to 82 form an integral part of the financial statements.
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Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
1. General information
European Assets Trust PLC is an investment company incorporated in England (UK) with a listing on the London Stock Exchange. The Company
registration number is 11672363 and the registered office is Cannon Place, 78 Cannon Street, London, EC4N 6AG, England.
The Company has conducted its affairs so as to qualify as an investment trust under the provisions of Section 1158 of the Corporation Tax
Act 2010. Approval of the Company under Section 1158 has been received. The Company intends to conduct its affairs so as to enable it to
continue to comply with the requirements. Such approval exempts the Company from UK Corporation Tax on gains realised in the relevant year
on its portfolio of fixed asset investments.
The accounting policies have been applied consistently throughout the year ended 31 December 2024, with no significant changes, as set out in
note 2 below.
2. Material accounting policy information and other explanatory information
(a) Basis of preparation
The financial statements of the Company have been prepared on a going concern basis under the historical cost convention modified to
include fixed asset investments and derivatives at fair value, and in accordance with the Companies Act 2006, UK-adopted International
Accounting Standards, which comprise standards and interpretations approved by the International Accounting Standards Board (the
“IASB”).
Where presentational guidance set out in the 2018 amended Statement of Recommended Practice “Financial Statements of Investment
Trust Companies and Venture Capital Trusts” (“SORP”) for investment trusts issued by the Association of Investment Companies (“AIC”)
is consistent with the requirements of UK-adopted International Accounting Standards, the Directors have sought to prepare the financial
statements on a basis compliant with the recommendations of the SORP.
All of the Company’s operations are of a continuing nature. The functional currency of the Company is the euro and presentational
currency is the pound sterling as the Board believe this will provide clarity of the Company’s financial statements for its Shareholders, the
overwhelming majority of whom are located in the United Kingdom.
The Board confirms that no other significant accounting judgements or estimates have been applied to the financial statements and
therefore there is no significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year.
As referred to in the Directors’ Report on page 38 and note 23 to the accounts the Directors believe that it is appropriate for the accounts
to be prepared on a going concern basis.
(b) New and revised accounting standards
The Company adopted the following amended standards and interpretations during the year however the Board does not expect the
changes to have an effect on the Company’s accounts:
• IAS 1 Amendments - Classification of Liabilities as Current or Non-Current (effective date amended to 1 January 2024). The
amendments specify the requirements for classifying liabilities as current or non-current;
Notes to the Accounts
66 | European Assets Trust PLC
• IAS 1 Amendments - Disclosure of Accounting Policies (effective 1 January 2024). The amendments require an entity to disclose
its material accounting policy information instead of its significant accounting policies. The amendments contain guidance and
examples on identifying material accounting policy information;
• IAS 1 Amendments - Non-current Liabilities with Covenants (effective 1 January 2024). The amendments require disclosure of
information when there is a right to defer settlement of a liability for at least twelve months;
• IAS 7 Amendments - Supplier Finance Arrangements (effective 1 January 2024). The amendments require an entity to provide
additional disclosures about its supplier finance arrangements to provide users of financial statements with information to
enable them to assess how supplier finance arrangements affect an entity’s liabilities and cash flows and to understand the
effect of supplier finance arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the
arrangements were no longer available to it; and
• IFRS 16 Amendments - Lease Liability in a Sale and Leaseback (effective 1 January 2024). The amendments require an entity to
add subsequent measurement requirements for sale and leaseback transactions.
Other new standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) but not
effective for the current financial year and not early adopted by the Company include:
• IAS 21 Amendments - Lack of Exchangeability (effective 1 January 2025). The amendments require an entity to apply a
consistent approach to assessing whether a currency is exchangeable into another currency and, when it is not, to determining
the exchange rate to use and the disclosures to provide; and
• IFRS 18 Presentation and Disclosure in Financial Statements and IAS 7 Amendments (effective 1 January 2027). The new
Standard gives investors more transparent and comparable information about companies’ financial performance, thereby
enabling better investment decisions, together with minor changes to other Standards.
The IASB have issued a number of other new standards, amendments and interpretations that are not yet effective for the current
financial year end and are not expected to be relevant or material to the Company’s operations. They are therefore not expected to
have an impact on the Company’s financial statements when they become effective.
(c) Presentation of Statement of Comprehensive Income
In order to reflect better the activities of an investment trust company and in accordance with guidance issued by the AIC,
supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature
has been presented alongside the Statement of Comprehensive Income. The net revenue return is the measure the Directors believe
appropriate in assessing the Company’s compliance with certain requirements set out in section 1158 Corporation Tax Act 2010.
(d) Financial instruments
Investments are recognised and derecognised on the trade date where a purchase or sale is under a contract whose terms require
delivery within the timeframe established by the market concerned, and are measured at fair value.
Investments are classified as fair value through profit or loss. As the entity’s business is investing in financial assets with a view to
profiting from their total return in the form of interest, dividends or increases in fair value, listed equities and fixed income securities
are designated as fair value through profit or loss on initial recognition.
Financial assets designated as at fair value through profit or loss are measured at subsequent reporting dates at fair value, which
is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.
2. Material accounting policy information and other explanatory information (continued)
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Chair’s StatementOverview Auditors’ Report
Financial Report
Unlisted investments are valued at fair value by the Directors on the basis of all information available to them at the time of
valuation.
Where securities are designated upon initial recognition as fair value through profit or loss, gains and losses arising from changes in
fair value are included in net profit or loss for the period as a capital item.
Accounting standards recognise a hierarchy of fair value measurements for financial instruments which gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs
(Level 3). The classification of financial instruments depends on the lowest significant applicable input, as follows:
Level 1 – quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 – other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly
or indirectly.
Level 3 – techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
(e) Receivables
Receivables do not carry any interest and are short term in nature and are accordingly stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts. Receivables are recognised initially at fair value based on contractual
settlement amounts and subsequently measured at amortised cost using the effective interest rate method. The Company records
any impairment allowance on financial assets at amortised cost using the expected credit loss model under the simplified method.
(f) Cash and cash equivalents
Cash at banks and short term deposits that are held to maturity are carried at cost. Cash and cash equivalents consist of cash at
bank and short term deposits with an original maturity of three months or less.
(g) Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An
equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Financial liabilities and equity instruments are initially recorded at the proceeds received, net of issue costs.
(h) Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received. Finance charges, including premiums payable on
settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Statement of Comprehensive Income
using the effective interest method and are added to the carrying amount of the instrument to the extent that they are not settled in
the period in which they arise.
(i) Derivative financial instruments
Derivatives are classified as fair value through profit or loss – held for trading and are held at fair value and changes in fair value are
recognised in the capital return column of the Statement of Comprehensive Income.
(j) Payables
Payables are not interest bearing and are recognised initially at fair value based on contractual settlement amounts and
subsequently measured at amortised cost using the effective interest rate method.
(k) Share capital and reserves
(i) Share capital is held at the year end as Sterling denominated Ordinary Shares.
(ii) Distributable reserve – Created by cancellation of the Share Premium Account. This reserve is available as distributable profits
and may be used for the payment of dividends and the repurchase of Company shares.
68 | European Assets Trust PLC
(iii) Capital Reserves
Capital reserves – arising on investments sold and distributable by way of a dividend.
The following are accounted for in this reserve:
• gains and losses on the disposal of fixed asset investments and derivatives;
• settled foreign exchange differences of a capital nature; and
• other capital charges and credits charged or credited to this account in accordance with the above policies.
Capital reserves – arising on investments held and are non-distributable
The following are accounted for in this reserve:
• increases and decreases in the valuation of fixed asset investments and derivatives held at the year-end; and
• unsettled foreign exchange valuation differences of a capital nature.
(iv) Revenue reserve – The revenue reserve represents accumulated revenue profits retained by the Company that have not currently
been distributed to Shareholders as a dividend.
(v) Cumulative translation reserve
This reserve comprises all foreign exchange differences arising from the translation from the Company’s functional currency, the
euro, to the reporting currency, pound sterling. The figure represents:
• the differences arising from translation of transactions made by the Company at the exchange rate on the date of execution;
• the translation of assets and liabilities held at the Statement of Financial Position (SOFP) date at the exchange rate prevailing
on that date; and,
• the translation of brought forward assets translated at the exchange rate prevailing on the SOFP date and brought forward
capital and reserves at prior period exchange rates.
(l) Income
Dividends are recognised as income on the date that the related investments are marked ex-dividend.
Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company’s right to
receive payment is established.
Special dividends of a non-capital nature are recognised through the revenue column of the Statement of Comprehensive Income.
Where the Company has elected to receive its dividends in the form of additional shares rather than cash, an amount equal to the
cash dividend is recognised as income.
Interest income from fixed interest securities is accrued on a time apportioned basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset’s net carrying amount. Other investment income and deposit interest are included on an accruals
basis.
(m) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the period. Taxable profit differs from profit before tax as reported in the
Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other periods
and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date.
The overseas tax recoverable debtor is reviewed periodically and amounts that are no longer recoverable, or the recovery is less than
certain, are provided against revenue.
2. Material accounting policy information and other explanatory information (continued)
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Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
(n) Deferred taxation
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets
are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences
can be utilised.
Investment trusts which have approval under section 1158 Corporation Tax Act 2010 are not liable for taxation on capital gains.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is
realised.
Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with in equity.
(o) Expenses and interest
All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Statement of
Comprehensive Income except those incurred in connection with the maintenance or enhancement of the value of the Company’s
investment portfolio taking account of the expected long term split of returns as follows:
• Management fees and finance costs have been allocated 20 per cent to revenue and 80 per cent to capital.
(p) Foreign currency
Foreign currency monetary assets and liabilities are expressed in Sterling at rates of exchange ruling at the Balance Sheet date.
Purchases and sales of investment securities, dividend income, interest income and expenses are translated at the rates of
exchange prevailing at the respective dates of such transactions. Exchange profits and losses on fixed assets investments are
included within the changes in fair value in the Capital Reserve. Exchange profits and losses on other currency balances are
separately credited or charged to the Capital Reserve except where they relate to revenue items.
Rates of exchange as at 31 December (with regard to Sterling) 2024 2023
Danish Krone 9.01928 8.60279
Norwegian Krone 14.22394 12.94648
Euro 1.20946 1.15403
Swedish Krona 13.83808 12.84724
Swiss Franc 1.13499 1.07294
(q) Use of judgements, estimates and assumptions
The presentation of the financial statements in accordance with accounting standards require the Board to make judgements,
estimates and assumptions that effect the accounting policies and reported amounts of assets, liabilities, income and expenses.
Estimates and judgements are continually evaluated and are based on perceived risks, historical experience, expectations of
plausible future events and other factors. Actual results may differ from these estimates.
The areas requiring the most significant judgement and estimation in preparation of the financial statements are: recognising and
classifying unusual or special dividends received as either revenue or capital in nature; and setting the level of dividends paid and
proposed in satisfaction of both the Company’s long-term objective and its obligations to adhere to Investment Trust status rules
under Section 1158 of the Corporation Tax Act 2010.
70 | European Assets Trust PLC
Dividends received which appear to be unusual in size or circumstance are assessed on a case-by-case basis, based on
interpretation of the investee companies’ relevant statements, to determine their allocation in accordance with the SORP to either
the Revenue Account or Capital Reserves. Dividends which have clearly arisen out of the investee company’s reconstruction or
reorganisation are usually considered to be capital in nature and allocated to Capital Reserves. Investee company dividends which
appear to be paid in excess of current year profits may nevertheless still be considered to be wholly revenue in nature unless
evidence suggests otherwise. The value of dividends received in the year treated as capital in nature is disclosed in note 18 to the
Accounts. The value of special dividends receivable in any period cannot be foreseen as such dividends are declared and paid by
investee companies without prior reference to the Company.
3. Income
£’000s
2024
% of total
income £’000s
2023
% of total
income
Dividend income
(1)
from listed investments in:
- Austria 260 2.8 236 3.0
- Belgium 267 3.0 66 0.8
- Denmark 347 3.9 313 4.0
- France 903 10.0 586 7.4
- Germany 709 7.8 539 6.8
- Ireland 1,957 21.7 928 11.8
- Italy 644 7.1 515 6.5
- Lithuania 23 0.3 - -
- Netherlands 567 6.3 441 5.6
- Norway 784 8.7 1,305 16.6
- Spain 494 5.5 865 11.0
- Sweden 1,176 12.9 1,235 15.7
- Switzerland 658 7.3 524 6.7
Total dividend income 8,789 97.3 7,553 95.9
Other income:
Interest on cash and cash equivalents 240 2.7 321 4.1
Total income 9,029 100.0 7,874 100.0
(1) Dividend income includes special dividends classified as revenue in nature in accordance with note 2(q) of £143,000 (2023: £107,000).
4. Operating segments
The Board has considered the requirements of IFRS 8 ‘Operating Segments’. The Board is of the view that the Company is engaged in a single
segment of business, of investing in listed equity securities and that therefore the Company has only a single operating segment. The Board of
Directors, as a whole, has been identified as constituting the chief operating decision maker of the Company.
5. Management fee
2024 2023
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue
£’000s
Capital
£’000s
Total
£’000s
Management fee 521 2,085 2,606 550 2,200 2,750
Previously, the Manager received a fee equal to 0.75% per annum of the value of funds under management up to €400 million, and in cases where
the value of funds under management exceeded €400 million, the applicable rate over such excess value was 0.6% per annum.
2. Material accounting policy information and other explanatory information (continued)
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Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
Following an amendment to the management agreement, effective 1 January 2024, the funds under management to which the applicable rate of
0.75% is applied has been lowered from €400 million to €300 million. For funds under management in excess of €300 million, the applicable rate
has been reduced from 0.60% to 0.55% per annum. The basis of calculation for funds under management remains unchanged.
Detailed regulatory disclosures including those on the AIF Manager’s remuneration policy and costs are available on Company’s website or from
Columbia Threadneedle Investments on request.
6. Other expenses
2024 2023
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue
£’000s
Capital
£’000s
Total
£’000s
Depositary and custody fees 99 – 99 74 – 74
Remuneration of Directors
(1)
206 – 206 207 – 207
Directors’ expenses 45 – 45 23 – 23
Indemnity insurance costs 13 – 13 14 – 14
Independent auditors' remuneration
– for audit services
(2)
60 – 60 55 – 55
Legal, secretarial and accounting 157 – 157 125 – 125
Broker fees 36 – 36 37 – 37
Marketing, advertising and printing costs 187 – 187 202 – 202
Registrar fees
51 – 51 42 – 42
Listing fees and subscriptions
64 – 64 61 – 61
Tax consultancy fees
92 – 92 25 – 25
Loan arrangement fees
32 – 32 – – –
Other expenses
(3)
56 47 103 104 60 164
Total other expenses 1,098 47 1,145 969 60 1,029
All expenses are stated gross of irrecoverable VAT, where applicable.
(1) See the Directors’ Remuneration Report on pages 48 to 50.
(2) Total Auditors’ remuneration for audit services, exclusive of VAT amounts to £48,460 (2023: £46,150). There were no non-audit services paid to PwC in the year (2023: none).
(3) Other expenses include employers NI, loan non-utilisation fees and other general expenses.
7. Directors fees
The emoluments of the Chairman, the highest paid Director, were at the rate of £49,000 per annum (2023: £48,000).
Other Directors’ emoluments amounted to £33,500 (2023: £32,750) each per annum, with the Chair of the Audit and Risk Committee receiving an
additional £5,250 (2023: £5,250) per annum and the Senior Independent Director an additional £4,250 (2023: £4,250). Full details are provided
in the Directors’ Remuneration Report on pages 48 to 50.
8. Finance costs
2024 2023
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue
£’000s
Capital
£’000s
Total
£’000s
Loan interest 276 1,102 1,378 140 561 701
Bank interest charges – – – 1 3 4
Total finance cost 276 1,102 1,378 141 564 705
Finance costs have been allocated 80% to capital reserve in accordance with note 2(o).
72 | European Assets Trust PLC
9. Taxation
(a) Analysis of tax charge for the year
2024 2023
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue
£’000s
Capital
£’000s
Total
£’000s
Overseas taxation 666 – 666 672 – 672
Total taxation (see note 9(b)) 666 – 666 672 – 672
The tax assessed for the year is lower (2023: lower) than the standard rate of corporation tax in the UK.
(b) Factors affecting the current tax charge for the year
2024 2023
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue
£’000s
Capital
£’000s
Total
£’000s
Net profit on ordinary activities before taxation 7,093 6,985 14,078 6,216 29,344 35,560
Net Return on ordinary activities multiplied by the standard rate of corporation tax of
25.0% (2023: 23.5%) 1,773 1,746 3,519 1,461 6,896 8,357
Effects of:
Dividends* (2,197) (138) (2,335) (1,776) – (1,776)
Capital returns* – (2,379) (2,379) – (7,564) (7,564)
Currency losses/(gains) 10 (38) (28) – 4 4
Expenses not utilised in the year 414 809 1,223 315 664 979
Overseas taxation not relieved 666 – 666 672 – 672
Total taxation (see note 9(a)) 666 – 666 672 – 672
* These items are not subject to corporation tax in an investment trust company.
No deferred tax asset in respect of unutilised expenses at 31 December 2024 (2023: same) has been recognised as it is uncertain that there
will be taxable profits from which the future reversal of a deferred tax asset could be deducted.
10. Dividends
The level of dividend paid by the Company each year is determined in accordance with the Company’s distribution policy. The Company has
stated that, barring unforeseen circumstances, it will pay an annual dividend equivalent to six per cent of the Net Asset Value at the end of
the preceding year. The dividend is funded from a combination of current year net profits and the Distributable Reserve.
The Company distributed the following interim dividends to Shareholders:
Register date Payment date
2024
£’000s
2023
£’000s
First of four interims for the year ended 31 December 2023 of 1.450 pence per share 13 Jan 23 31 Jan 23 – 5,221
Second of four interims for the year ended 31 December 2023 of 1.450 pence per share 11 Apr 23 28 Apr 23 – 5,221
Third of four interims for the year ended 31 December 2023 of 1.450 pence per share 07 Jul 23 31 Jul 23 – 5,221
Fourth of four interims for the year ended 31 December 2023 of 1.450 pence per share 06 Oct 23 31 Oct 23 – 5,221
First of four interims for the year ended 31 December 2024 of 1.475 pence per share 12 Jan 24 31 Jan 24 5,311 –
Second of four interims for the year ended 31 December 2024 of 1.475 pence per share 05 Apr 24 30 Apr 24 5,311 –
Third of four interims for the year ended 31 December 2024 of 1.475 pence per share 05 Jul 24 31 Jul 24 5,311 –
Fourth of four interims for the year ended 31 December 2024 of 1.475 pence per share 04 Oct 24 31 Oct 24 5,311 –
21,244 20,884
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Chair’s StatementOverview Auditors’ Report
Financial Report
2024
£’000s
Net revenue return attributable to Shareholders 6,427
First of four interims for the year ended 31 December 2024 of 1.475 pence per share (5,311)
Second of four interims for the year ended 31 December 2024 of 1.475 pence per share (5,311)
Third of four interims for the year ended 31 December 2024 of 1.475 pence per share (5,311)
Fourth of four interims for the year ended 31 December 2024 of 1.475 pence per share (5,311)
Shortfall paid from distributable reserves (14,817)
11. Earnings per share
The net return is equivalent to profit after tax per the Statement of Comprehensive Income. The return per share figure is based on the
net profit or loss for the year and on the weighted average number of shares in issue during the year. The return per share amount can be
further analysed between revenue and capital, as follows:
2024 2023
Revenue Capital Total Revenue Capital Total
Net return attributable to equity Shareholders – £’000s 6,427 6,985 13,412 5,544 29,344 34,888
Return per share – pence 1.78 1.94 3.72 1.54 8.15 9.69
Both the revenue and capital returns per share are based on a weighted average of 360,069,279 Ordinary Shares in issue during the year
(2023: 360,069,279).
12. Investments held at fair value through profit or loss
2024
Total
(Level 1)
£’000s
2023
Total
(Level 1)
£’000
Cost brought forward 327,578 306,742
Unrealised gains brought forward 47,488 33,975
Fair value of investments at 1 January 375,066 340,717
Movements in the period:
Purchases at cost 123,311 138,453
Sales proceeds (146,220) (128,176)
(Losses)/gains on investments sold in the year (5,626) 10,559
Movement in unrealised gains on investments held at the year end 15,141 21,626
Translation Adjustment (16,948) (8,113)
Fair value of investments at 31 December 344,724 375,066
Cost at 31 December 299,043 327,578
Unrealised gains carried forward 45,681 47,488
Fair value of investments at 31 December 344,724 375,066
2024
£’000s
2023
£’000s
(Losses)/gains on investments sold in the year (5,626) 10,559
Movement in unrealised gains on investments held at the year end 15,141 21,626
Total gains in year 9,515 32,185
All assets held by the Company were classified as Level 1 in nature as described in note 2(d) and includes investments and derivatives listed on any recognised stock exchange.
74 | European Assets Trust PLC
Investments sold during the year have been revalued over time since their original purchase, and until they were sold any unrealised
gains/losses was included in the fair value of the investments.
Included within the capital reserve movement for the year are £278,000 (2023: £270,000) of transaction costs including stamp duty on
purchases of investments and £71,000 (2023: £69,000) of transaction costs on sales of investments.
Listed equities designated at fair value through profit or loss on initial recognition,
incorporated in: £’000s
2024
% of total
investments £’000s
2023
% of total
investments
- Austria 1,578 0.5 5,773 1.5
- Belgium 3,987 1.1 9,420 2.5
- Denmark 20,448 5.9 20,042 5.3
- Finland 6,465 1.9 – –
- France 29,248 8.5 24,682 6.6
- Germany 32,146 9.3 41,158 11.0
- Ireland 42,936 12.4 39,018 10.4
- Italy 38,556 11.2 31,180 8.3
- Jersey 6,622 1.9 4,927 1.3
- Lithuania 4,289 1.2 – –
- Netherlands 27,809 8.1 33,369 8.9
- Norway 17,582 5.1 28,771 7.7
- Spain 23,662 6.9 28,875 7.7
- Sweden 42,295 12.3 59,117 15.8
- Switzerland 47,101 13.7 48,734 13.0
344,724 100.0 375,066 100.0
The investment portfolio is set out on pages 21 and 22.
13. Other receivables
2024
£’000s
2023
£’000s
Accrued income 13 –
Investments sold awaiting settlement 275 –
Prepayments 30 32
Overseas taxation recoverable 2,184 3,031
2,502 3,063
14. Other payables
2024
£’000s
2023
£’000s
Loan Interest 49 58
Accruals 174 168
223 226
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Financial Report
15. Borrowings
Until March 2024 the Company had a €45 million multicurrency loan facility with the Bank of Nova Scotia, London Branch. Upon this
facility’s expiry the Company entered into a new revolving multicurrency loan with a maximum potential facility of €60 million with The
Royal Bank of Scotland International (“RBSI”), London Branch. The covenants for both RBSI and the Bank of Nova Scotia facility’s have all
been met during the period. The interest rate on amounts drawn down and commitment fees payable on undrawn amounts are based on
commercial terms agreed with the lenders.
As at 31 December 2024 the Company had drawn down €35 million (£28.9 million) of the loan facility.
16. Share capital
2024
Issued, allotted and fully paid
2023
Issued, allotted and fully paid
Number £’000s Number £’000s
Ordinary Shares of £0.10 each
Balance brought forward and carried forward at 31 December 360,069,279 37,506 360,069,279 37,506
17. Distributable reserve
2024
£’000s
2023
£’000s
Balance brought forward 281,605 296,945
Dividends paid from distributable reserve (14,817) (15,340)
Balance carried forward 266,788 281,605
The Distributable reserve balance of £266.8 million, or 74.09 pence per share as at 31 December 2024, represents approximately a 13x
multiple of the annual dividend declared for the year ended 31 December 2025 of 5.52 pence per share, based on 360,069,279 shares
being in issue.
18. Capital & Revenue Reserves
Capital reserve
– realised
£’000s
Capital reserve
– unrealised
£’000s
Capital reserves
– total
£’000s
Revenue
reserve
£’000s
Movements in the year:
Losses on investments sold in year (5,626) – (5,626) –
Gains on investments held at year end – 15,141 15,141 –
Foreign exchange gains 138 12 150 –
Capital special dividends 554 – 554 –
Management fee (see note 5) (2,085) – (2,085) –
Finance costs (see note 8) (1,102) – (1,102) –
Other capital charges (see note 6) (47) – (47) –
Revenue return – – – 6,427
Return attributable to Shareholders (8,168) 15,153 6,985 6,427
Dividends paid in year (see note 10) – – – (6,427)
Balance at 31 December 2023 (15,576) 53,591 38,015 –
Balance at 31 December 2024 (23,744) 68,744 45,000 –
Included within the capital reserve movement for the year is £554,000 (2023: £nil) of dividend receipts recognised as capital in nature.
76 | European Assets Trust PLC
19. Net Asset Value per Ordinary Share
The net asset value per share is based on the net assets attributable to the Ordinary Shares in issue as at 31 December:
2024 2023
Net asset value per share – pence 91.82 98.31
Net assets attributable at the year end – £'000s 330,609 353,996
Number of Ordinary Shares in issue at the year end 360,069,279 360,069,279
20. Reconciliation of total return before taxation to net cash flows from operating activities
2024
£’000s
2023
£’000s
Net return on ordinary activities before taxation 14,078 35,560
Adjustments for non-cash flow items, dividend income and interest expense:
Gains on investments (9,515) (32,185)
Foreign exchange movements (109) 15
Non-operating expenses of a capital nature 47 60
Dividend income receivable (8,789) (7,553)
Interest receivable (240) (321)
Interest payable 1,378 705
Increase in other debtors (30) (2)
Increase/(decrease) in other creditors 6 (607)
(17,252) (39,888)
Cash flows from operating activities before interest and dividends received and interest paid (3,174) (4,328)
21. Reconciliation of liabilities arising from financing activities
Bank loans
£’000s
2024
Total
£’000s
Bank loans
£’000s
2023
Total
£’000s
Financial liabilities brought forward 25,996 25,996 8,872 8,872
Cash flows:
Drawdown of bank loans 4,301 4,301 26,293 26,293
Repayment of bank loans – – (8,589) (8,589)
Non-cash:
Translation adjustment (1,359) (1,359) (580) (580)
Financial liabilities carried forward 28,938 28,938 25,996 25,996
22. Financial Risk Management
The Company is an investment company, listed on the London Stock Exchange, and conducts its affairs so as to qualify in the United
Kingdom (“UK”) as an investment trust under the provisions of section 1158 of the Corporation Tax Act (“CTA”). In so qualifying, the
Company is exempted in the UK from corporation tax on capital gains on its portfolio of investments.
The Company invests in equities in order to achieve its investment objective, which is to achieve growth of capital through investment in
quoted small and medium-sized companies in Europe, excluding the United Kingdom. In pursuing this objective, the Company is exposed
to financial risks which could result in a reduction in the Company’s value of the net assets and profits available for distribution by way
of dividend. These financial risks are principally related to the market (currency movements, interest rate changes and security price
movements), liquidity and credit.
Report and Accounts 2024 | 77
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
The Company’s use of leverage and borrowings can increase its exposure to these risks, which in turn can also increase the potential
returns it can achieve. The Company has specific limits on these instruments to manage the overall potential exposure. These limits
include the ability to borrow against the assets of the Company up to a level of 20 per cent of assets as permitted under the Articles of
Association.
The Board, together with the Manager, is responsible for the Company’s risk management, as set out in detail in the Strategic Report and
Directors’ Report. The Directors’ policies and processes for managing the financial risks are set out in (a), (b) and (c) on the following pages.
The accounting policies which govern the reported Balance Sheet carrying values of the underlying financial assets and liabilities, as well
as the related income and expenditure, are set out in note 2. The policies are in compliance with UK-adopted International Accounting
Standards and best practice. The Company does not make use of hedge accounting rules.
(a) Market risks
The fair value of equity and other financial securities including derivatives held in the Company’s portfolio fluctuates with changes in
market prices. Prices are themselves affected by movements in currencies and interest rates and by other financial issues, including the
market perception of future risks. The Board sets policies for managing these risks within the Company’s objective and meets regularly
to review full, timely and relevant information on investment performance and financial results. The Manager minimises the price risk by
diversifying the selection of companies across the European countries, sectors and individual stocks, assessing exposure to market risks
and the benchmark when making each investment decision and monitors the ongoing market risk within the portfolio.
Details of the geographical exposure of investments can be found in note 12, the table below is a summary of the sector concentrations
with the portfolio:
Portfolio
%
2024
Benchmark
%
Portfolio
%
2023
Benchmark
%
Sector:
Industrials 34.7 28.0 30.1 24.5
Financials 16.7 19.1 12.3 16.9
Consumer Discretionary 14.0 8.0 13.6 8.2
Technology 10.3 4.8 11.7 6.9
Basic Materials 9.7 8.8 7.2 11.7
Consumer Staples 8.7 4.7 9.3 5.2
Health Care 4.0 9.2 9.4 8.8
Telecommunications 1.9 5.7 1.4 5.6
Energy – 5.3 2.2 5.5
Real Estate – 3.8 2.8 3.7
Utilities 2.6 – 3.0
100.0 100.0 100.0 100.0
Based on the portfolio of investments held at each Balance Sheet date, and assuming other factors, including the management charge,
remain constant, an increase or decrease in the fair value of the portfolio in sterling terms by 20% would have had the following
approximate effects on the net capital return attributable to Shareholders and on the NAV per share:
Increase
in value
2024
Decrease
in value
Increase
in value
2023
Decrease
in value
Capital return – £’000s 68,945 (68,945) 75,013 (75,013)
NAV per share – pence 19.15 (19.15) 20.83 (20.83)
78 | European Assets Trust PLC
(b) Currency risk
The Company invests in securities denominated in European currencies other than the euro which gives rise to currency risk. It is not the
Company’s policy to hedge this risk. The table below is a summary of the Company currency exposure:
2024
£’000s
2023
£’000s
Danish Krone 20,448 20,043
Norwegian Krone 17,582 28,771
Pound Sterling 16,484 4,927
Swedish Krona 42,295 59,117
Swiss Franc 47,102 48,734
Total 143,911 161,592
Based on the financial assets and liabilities held and the exchange rates applying at the Balance Sheet date, a weakening or
strengthening of the euro against other currencies by 10% would have the following approximate effect on returns attributable to
Shareholders and on the NAV per share.
Weakening of the euro by 10% against other currencies
2024
£’000s
2023
£’000s
Net revenue return attributable to Shareholders 276 325
Net capital return attributable to Shareholders 14,437 16,228
Net total return attributable to Shareholders 14,713 16,553
NAV per share - pence 4.09 4.60
Strengthening of the euro by 10% against other currencies
2024
£’000s
2023
£’000s
Net revenue return attributable to Shareholders (276) (325)
Net capital return attributable to Shareholders (14,437) (16,228)
Net total return attributable to Shareholders (14,713) (16,553)
NAV per share - pence (4.09) (4.60)
These effects are representative of the Company’s activities although the level of the Company’s exposure to the other currencies
fluctuates in accordance with the investment and risk management processes. As this analysis only reflects financial assets and liabilities,
it does not include the impact of currency exposures on the management fee.
As discussed in note 2(a) the functional currency of the Company is the euro. Income earned in foreign currencies is therefore converted
to the euro on receipt. The Board regularly monitors the effects of movements in foreign exchange rates on net revenues, interest earned
on deposits and paid on gearing.
During the year, the Company entered in to Forward Currency Contracts for the purpose of hedging the euro to pound sterling exposure
as a result of the differing functional currency and dividend payment currency. These forward currency contracts resulted in a net gain of
£493,000 (2023: net gain of £277,000).
22. Financial Risk Management (continued)
Report and Accounts 2024 | 79
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
The fair values of the Company’s assets and liabilities at 31 December by currency are shown below:
2024
Short-term
debtors
£’000s
Cash and cash
equivalents
£’000s
Short-term
creditors
- other
£’000s
Short-term
creditors
- loans
£’000s
Net monetary
(liabilities)/
assets
£’000s
Investments
£’000s
Net exposure
£’000s
Euro 1,936 12,544 (51) (28,938) (14,509) 200,813 186,304
Danish Krone 164 – – – 164 20,448 20,612
Norwegian Krone 134 – – – 134 17,582 17,716
Pound Sterling – – (172) – (172) 16,484 16,312
Swedish Krona – – – – – 42,295 42,295
Swiss Franc 268 – – – 268 47,102 47,370
Total 2,502 12,544 (223) (28,938) (14,115) 344,724 330,609
2023
Short-term
debtors
£’000s
Cash and cash
equivalents
£’000s
Short-term
creditors
- other
£’000s
Short-term
creditors
- loans
£’000s
Net monetary
(liabilities)/
assets
£’000s
Investments
£’000s
Net exposure
£’000s
Euro 2,215 2,089 (73) (25,996) (21,765) 213,474 191,709
Danish Krone 256 – – – 256 20,043 20,299
Norwegian Krone 328 – – – 328 28,771 29,099
Pound Sterling 31 – (153) – (122) 4,927 4,805
Swedish Krona – – – – – 59,117 59,117
Swiss Franc 233 – – – 233 48,734 48,967
Total 3,063 2,089 (226) (25,996) (21,070) 375,066 353,996
(c) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate as a result of changes in interest rates. When the
Company retains cash balances, the cash is held with approved banks, usually on overnight deposit. In addition, the Company has a loan
facility which is exposed to floating interest rate risk. Interest received or paid on cash balances and bank overdrafts is at market rates
and is monitored and reviewed by the investment manager and the board.
The exposure of the financial assets and liabilities to interest rate movements at 31 December was:
2024 2023
Within
one year
£’000s
More than
one year
£’000s
Total
£’000s
Within
one year
£’000s
More than
one year
£’000s
Total
£’000s
Exposure to floating rates:
Cash and cash equivalents 12,544 – 12,544 2,089 – 2,089
Loans (28,938) – (28,938) (25,996) – (25,996)
Net exposure (16,394) – (16,394) (23,907) – (23,907)
The Company had no exposure to fixed interest rates at the year end.
Exposures vary throughout the year as a consequence of changes in the composition of the net assets of the Company arising out of the
investment and risk management processes.
80 | European Assets Trust PLC
Based on the financial assets and liabilities held and the interest rates ruling at each balance sheet date, an increase or decrease in interest
rates of 2% would have the following approximate effects on the Income Statement revenue and capital returns after tax and on the NAV per
share:
Increase
in rate
£’000s
2024
Decrease
in rate
£’000s
Increase
in rate
£’000s
2023
Decrease
in rate
£’000s
Revenue return (66) 66 (96) 96
Capital return (262) 262 (383) 383
Total return (328) 328 (479) 479
NAV per share – pence (0.09) 0.09 (0.13) 0.13
(d) Credit risk and counterparty exposure
Credit and Counterparty risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it
has entered into with the Company. The Company has in place a monitoring procedure in respect of counterparty risk which is reviewed on an
ongoing basis. The carrying amounts of financial assets best represent the maximum credit risk exposure at the balance sheet date.
Credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is
considered to be small due to the short settlement period involved and the financial stability and credit quality of the brokers used, which
are monitored on an ongoing basis by the investment manager. The investment manager also monitors the quality of service provided by the
brokers used to further mitigate this risk.
The Company has an ongoing contract with its custodian for the provision of custody services. The contract is reviewed regularly. Details
of securities held in custody on behalf of the Company are received and reconciled monthly. The Company’s Depositary, JPMorgan Europe
Limited, has regulatory responsibilities relating to segregation and safe keeping of the Company’s financial assets, amongst other duties, as
set out in the Directors’ Report. The Board has direct access to the Depositary and receives regular reports from it via the Manager.
To the extent that the Manager carries out management and administrative duties (or causes similar duties to be carried out by third parties)
on the Company’s behalf, the Company is exposed to counterparty risk. The Board assesses this risk through regular meetings with the
management of Columbia Threadneedle Investments (including the Fund Manager) and with its Risk Management function. In reaching its
conclusions, the Board also reviews Columbia Threadneedle Investments annual Audit and Assurance Faculty Report.
In summary, compared to the amounts held at the balance sheet date of £nil, the maximum exposure to credit risk during the year was £nil
(2023: Balance Sheet: same; maximum exposure: same).
None of the Company’s financial liabilities is past its due date or impaired.
(e) Liquidity risk
The Company is required to raise funds to meet commitments associated with financial instruments and share buybacks. These funds
may be raised either through the realisation of assets or through increased borrowing. The risk of the Company not having sufficient
liquidity at any time is not considered by the Board to be significant, given: the number of quoted investments held in the Company’s
portfolio (100% at 31 December 2024 and 100% at 31 December 2023); the liquid nature of the portfolio of investments; the industrial
and geographical diversity of the portfolio (see pages 21 to 22); and the existence of an ongoing loan and overdraft facility agreement.
All investments are realisable within one year and therefore no detailed maturity analysis has been included. Cash balances are held with
approved banks, usually on overnight deposit. The Manager reviews liquidity at the time of making each investment decision. The Board
reviews liquidity exposure at each meeting.
The Company has an unsecured revolving floating rate credit agreement with a maximum potential facility of £60 million available until
March 2025 with The Royal Bank of Scotland International, London Branch.
22. Financial Risk Management (continued)
Report and Accounts 2024 | 81
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Financial Report
(f) Fair values of financial assets and liabilities
IFRS 13 requires disclosures relating to fair value measurements using a three-level hierarchy (see note 2(d)). The level within which the
fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value
measurement. Assessing the significance of a particular input requires judgement, considering factors specific to the asset or liability.
The assets and liabilities of the Company are, in the opinion of the Directors, reflected in the Balance Sheet at fair value, or at a reasonable
approximation thereof. Borrowings under loan and overdraft facilities do not have a value materially different from their capital repayment
amount.
(g) Capital risk management
The objective of the Company is stated as being to achieve growth of capital through investment in quoted small and medium-sized
companies in Europe, excluding the United Kingdom. In pursuing this objective, the Board has a responsibility for ensuring the Company’s
ability to continue as a going concern. It must therefore maintain an optimal capital structure through varying market conditions. This
involves the ability to: issue and buy back share capital within limits set by the Shareholders in general meeting; borrow monies in
the short and long term; and pay dividends to Shareholders out of current year revenue earnings as well as out of other distributable
reserves.
Changes to Ordinary Share capital are set out in note 16, dividend payments in note 10 and details of loans in note 15.
23. Going Concern
In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting
Council. They have also considered the Company’s objective, strategy and policy, the current cash position of the Company, the availability
of the loan facility and compliance with its covenants and the operational resilience of the Company and its service providers.
At present the global economy is suffering disruption due to the effects of the war in Ukraine, events in the Middle East, and the threat of
US trade tariffs and the Directors have given serious consideration to the consequences for this Company. As at 31 December 2024, the
Company has a multi-currency loan with a maximum potential facility of €60 million with The Royal Bank of Scotland International Limited,
London Branch, of which €35.0 million was drawndown.
Following the year end, the Company’s loan facility with The Royal Bank of Scotland International Limited, London Branch was extended
until February 2026 on similar terms.
The Company has a number of banking covenants and at present the Company’s financial position does not suggest that any of these are
close to being breached. The primary risk is that there is a very substantial decrease in the net asset value of the Company in the short to
medium term.
Financial modelling has been undertaken to consider compliance with these covenants in several scenarios including the outcome of the
2008 Global Financial Crisis. These extreme but plausible scenarios indicate that the loan covenants would not be breached. In addition,
the Directors have considered the remedial measures that are open to the Company if such a covenant breach appears possible. As at
1 April 2025, the latest practicable date before the publication of this report, borrowings amounted to €35.0 million (£29.3 million). This
is in comparison to a net asset value of €392.2 million (£328.0 million). In accordance with its investment policy the Company is invested
mainly in readily realisable listed securities. These can be realised if necessary, to repay the loan facility and fund the cash requirements
for future dividend payments.
The Company operates within a robust regulatory environment. The Company retains title to all assets held by the Custodian. Cash is held
with banks approved and regularly reviewed by the Manager and the Board.
The Company’s annual dividend, which is declared in sterling, is determined by reference to the year-end net asset value. The Company
manages any sterling/euro exchange rate exposure which may arise from the declaration of a sterling denominated dividend by entering
into specific matched forward currency hedging contracts. As at 31 December 2024 the Company had a Distributable Reserve of £266.8
million.
82 | European Assets Trust PLC
As at 31 December 2024 the Company had net current liabilities of £14.1 million. The Company invests in listed securities which can be
realised to fund any short term cash shortfall that may arise.
Based on this information the Directors believe that the Company has the ability to meet its financial obligations as they fall due for a
period of at least twelve months from the date of approval of these financial statements. Accordingly, these financial statements have
been prepared on a going concern basis.
24. Related party transactions
The Directors of the Company are considered a related party. There are no transactions with the Board other than aggregated
remuneration for services as Directors as disclosed in the Directors’ Remuneration Report on pages 48 to 50 and as set out in note 7 to
the financial statements.
There are no outstanding balances with the Board at the year end.
The beneficial interests of the Directors in the Ordinary Shares of the Company are disclosed on page 49.
25. Transactions with the Manager
Transactions between the Company and Columbia Threadneedle Investments are detailed in note 5 on management fees. The existence of
an independent Board of Directors demonstrated that the Company is free to pursue its own financial and operating policies and therefore
under the AIC SORP, the Manager is not considered a related party.
Report and Accounts 2024 | 83
Notice of Meeting
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
5. To authorise the Audit and Risk Committee to determine the
remuneration of the auditor for the audit of the Report and
Accounts for the year ended 31 December 2025.
6. To re-elect Stuart Paterson to the Board of European Assets Trust
PLC.
7. To re-elect Kate Cornish-Bowden to the Board of European Assets
Trust PLC.
8. To elect Monica Tepes to the Board of European Assets Trust PLC.
9. To re-elect Kevin Troup to the Board of European Assets Trust PLC.
10. To re-elect Pui Kei Yuen to the Board of European Assets Trust PLC.
11. That, in accordance with section 551 of the Companies Act 2006
(the “Act”), the Directors be and they are hereby generally and
unconditionally authorised to allot shares in the Company to an
aggregate nominal amount of £3,600,692 equal to 10 per cent of
the total issued share capital of the Company as at 1 April 2025.
Unless previously varied, revoked or renewed, this authority shall
expire at the conclusion of the Annual General Meeting of the
Company in 2026, save that the Company may, before the expiry
of any authority contained in this resolution, make an offer or
agreement which would or might require shares to be allotted or
rights to be granted after such expiry and the Directors may allot
shares or grant rights in pursuance of such offer or agreement as
if the authority conferred hereby had not expired. This authority is
in substitution for all previous unexercised authorities conferred on
the Directors in accordance with section 551 of the Act.
Special Resolutions:
12. That, subject to the passing of resolution 11, the directors
be empowered pursuant to section 570 of the Companies
Act 2006 (the “Act”) to allot equity securities (as defined
in section 560 of the Act) for cash pursuant to the general
authority conferred on them by resolution 11 and/or to sell
equity securities held as treasury shares for cash pursuant to
section 727 of the Act 2006, in each case as if section 561
of the Act did not apply to any such allotment or sale, provided
that this power shall be limited to:
a) any such allotment and/or sale of equity securities in
connection with an offer or issue by way of rights or other
pre-emptive offer or issue, open for acceptance for a period
fixed by the directors, to holders of shares (other than the
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE
ATTENTION
If you are in any doubt as to any aspect of the proposals referred to
in this document or as to the action you should take, you should seek
your own advice from a stockbroker, solicitor, accountant, or other
independent professional adviser immediately. If you have sold
or otherwise transferred all of your shares, please pass this document
together with the accompanying documents to the purchaser or
transferee, or to the person who arranged the sale or transfer, so they
can pass these documents to the person who now holds the shares.
European Assets Trust PLC
(incorporated in England and Wales under the Companies Act 2006 with
registered number 11672363)
Notice is hereby given that the seventh Annual General Meeting of
Shareholders of European Assets Trust PLC, the “Company”, will be held
on Tuesday, 24 June 2025 at 3.00 pm at Cannon Place, 78 Cannon
Street, London EC4N 6AG, to transact the following business.
The resolutions to be proposed to the meeting are set out below.
Resolutions 1 to 11 will be proposed as ordinary resolutions, meaning
that for each of those resolutions to be passed, more than half the
votes cast must be in favour. Resolutions 12 to 13 will be proposed as
special resolutions, meaning that for either of those resolutions to be
passed, at least three-quarters of the votes cast must be in favour.
Ordinary Resolutions:
1. To receive and adopt the Directors’ report and accounts for the
year ended 31 December 2024 together with the Independent
Auditor’s Report thereon (the “2024 Report and Accounts”).
2. To approve the Company’s dividend policy with regard to quarterly
payments as set out on page 24 of the Report and Accounts 2024.
3. To approve the Directors’ Remuneration Report for the year ended
31 December 2024 set out on pages 48 to 50 of the 2024 Report
and Accounts.
4. To re-appoint PricewaterhouseCoopers LLP as auditors to European
Assets Trust PLC, to hold office from the conclusion of the meeting
until the conclusion of the next general meeting at which accounts
are laid before the Company.
Notice of Annual General Meeting
84 | European Assets Trust PLC
Company) on the register on any record date fixed by the
directors in proportion (as nearly as may be) to the respective
number of shares deemed to be held by them, subject to such
exclusions or other arrangements as the directors may deem
necessary or expedient in relation to fractional entitlements,
legal or practical problems arising in any overseas territory, the
requirements of any regulatory body or stock exchange or any
other matter whatsoever; and
b) any such allotment and/or sale, otherwise than
pursuant to sub-paragraph (a) above, of equity securities
having an aggregate nominal value not exceeding the sum of
£3,600,692 (being an amount equal to 10 per cent of the
total issued share capital of the Company as at 1 April 2025,
being the latest practicable date before the publication of this
notice).
This authority shall expire, unless previously varied, revoked or
renewed by the Company in general meeting, at the conclusion
of the Annual General Meeting of the Company in 2026, except
that the Company may before such expiry make any offer or
agreement which would or might require equity securities to
be allotted or equity securities held as treasury shares to
be sold after such expiry and the directors may allot equity
securities and/or sell equity securities held as treasury shares
in pursuance of such an offer or agreement as if the power
conferred by this resolution had not expired.
13. That the Company be and it is hereby authorised in accordance
with section 701 of the Companies Act 2006 (the “Act”) to
make market purchases (within the meaning of section 693(4)
of the Act) of Ordinary Shares of 10 pence each in the capital
of the Company (“Ordinary Shares”) provided that:
(i) the maximum number of Ordinary Shares authorised to
be purchased shall be 14.99 per cent of the number of the
Ordinary Shares in issue at the date on which this resolution is
passed;
(ii) the minimum price (exclusive of expenses) which may be
paid for an Ordinary Share shall be 10p;
(iii) the maximum price (exclusive of expenses) which may be
paid for an Ordinary Share shall not be more than the highest
of:
(a) 5 per cent above the average of the middle market
quotations of Ordinary Shares as derived from the London
Stock Exchange Daily Official List for the five business days
immediately preceding the date of purchase;
(b) the price of the last independent trade on the trading
venue where the purchase is carried out; and
(c) the highest current independent purchase bid for any of
the Ordinary Shares on that venue.
(iv) unless previously varied, revoked or renewed, the
authority hereby conferred shall expire at the conclusion of the
Annual General Meeting of the Company in 2026, save that
the Company may, prior to such expiry, enter into a contract
to purchase Ordinary Shares under such authority which will
or might be executed wholly or partly after the expiration of
such authority and may make a purchase of Ordinary Shares
pursuant to any such contract.
By order of the Board
Columbia Threadneedle Investment Business Limited
6th Floor
Quartermile 4
7a Nightingale Way
Edinburgh EH3 9EG
2 April 2025
A member who is entitled to attend and vote at this meeting is
entitled to appoint one or more proxies to attend and, on a poll,
vote on his/her behalf. Such a proxy need not also be a member of
the Company.
A Form of Proxy for use by Shareholders is enclosed with this
Report. Completion of the Form of Proxy will not prevent a
Shareholder from attending the meeting and voting in person.
Notes:
1. A member of the Company at the time set out in note 7 below is
entitled to appoint one or more proxies to exercise all or any of
the member’s rights to attend, speak and vote at the meeting. A
proxy need not be a member of the Company but must attend the
meeting for the member’s vote to be counted. If a member appoints
more than one proxy to attend the meeting, each proxy must be
appointed to exercise the rights attached to a different share or
shares held by that member.
A member who wishes to attend the AGM in person should arrive
at the venue for the AGM in good time to allow their attendance
to be registered. As they may be asked to provide evidence of
their identity prior to being admitted to the AGM, it is advisable for
members to have some form of identification with them.
2. Any person holding 3% or more of the voting rights in the Company
who appoints a person other than the Chair as their proxy will
need to ensure that both he and such person complies with their
respective disclosure obligations under the Disclosure Guidance
and Transparency Rules.
3. A Form of Proxy is provided with this notice for members. If a
member wishes to appoint more than one proxy and so requires
additional proxy forms, the member should contact Computershare
Investor Services PLC on 0370 889 4094. To be valid, the Form of
Proxy and any power of attorney or other authority under which it
Report and Accounts 2024 | 85
Notice of Meeting
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
apply for the purpose of determining the entitlement of members
to attend and vote (and for the purposes of determining the
number of votes they may cast) at the adjourned meeting. Changes
to the register of members after the relevant deadline shall be
disregarded in determining the rights of any person to attend and
vote at the meeting.
8. If you are an institutional investor you may be able to appoint a
proxy electronically via the Proxymity platform, a process which has
been agreed by the Company and approved by the Registrar. For
further information regarding Proxymity, please go to www.proxymity.
io. Your proxy must be lodged by 3.00 p.m. on 20 June 2025 in
order to be considered valid.
Before you can appoint a proxy via this process you will need to
have agreed to Proxymity’s associated terms and conditions. It is
important that you read these carefully as you will be bound by
them and they will govern the electronic appointment of your proxy.
CREST members who wish to appoint a proxy or proxies through
the CREST electronic proxy appointment service may do so for the
meeting and any adjournment(s) thereof by using the procedures
described in the CREST Manual. CREST Personal Members or other
CREST sponsored members, and those CREST members who have
appointed a voting service provider(s), should refer to their CREST
sponsor or voting service provider(s), who will be able to take the
appropriate action on their behalf.
9. In order for a proxy appointment or instruction made using the
CREST service to be valid, the appropriate CREST message (a
“CREST Proxy Instruction”) must be properly authenticated in
accordance with Euroclear UK & Ireland Limited’s specifications
and must contain the information required for such instruction,
as described in the CREST Manual (available via www.euroclear.
com/CREST). The message, regardless of whether it constitutes
the appointment of a proxy or is an amendment to the instruction
given to a previously appointed proxy must, in order to be valid, be
transmitted so as to be received by the issuer’s agent (ID number
3RA50) by the latest time(s) for receipt of proxy appointments
specified in notes 3 and 4. For this purpose, the time of receipt will
be taken to be the time (as determined by the time stamp applied
to the message by the CREST Application Host) from which the
issuer’s agent is able to retrieve the message by enquiry to CREST
in the manner prescribed by CREST. After this time, any change
of instructions to proxies appointed through CREST should be
communicated to the appointee through other means.
10. CREST members and, where applicable, their CREST sponsors
or voting service provider(s) should note that Euroclear UK &
Ireland Limited does not make available special procedures in
CREST for any particular messages. Normal system timings and
limitations will therefore apply in relation to the input of CREST
Proxy Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST personal
member or sponsored member or has appointed a voting service
provider(s), to procure that his CREST sponsor or voting service
provider(s) take(s)) such action as shall be necessary to ensure
that a message is transmitted by means of the CREST system by
any particular time. In this connection, CREST members and, where
applicable, their CREST sponsors or voting service provider(s)
are referred, in particular, to those sections of the CREST Manual
concerning practical limitations of the CREST system and timings
(www.euroclear.com/CREST).
is signed (or a notarially certified copy of such authority) must be
received by post or (during normal business hours only) by hand
at the Company’s Registrar, Computershare Investor Services PLC,
The Pavilions, Bridgwater Road, Bristol BS99 6ZY, not less than
48 hours before the time of the holding of the meeting or any
adjournment thereof. Amended instructions must also be received
by the Company’s Registrar by the deadline for receipt of Forms of
Proxy.
4. Alternatively, members may register the appointment of a proxy
for the meeting electronically, by accessing the website www.
eproxyappointment.com where full instructions for the procedure
are given. The Control Number, Shareholder Reference and PIN as
printed on the Form of Proxy will be required in order to use the
electronic proxy appointment system. This website is operated
by Computershare Investor Services PLC. The proxy appointment
and any power of attorney or other authority under which the proxy
appointment is made must be received by Computershare Investor
Services PLC not less than 48 hours before the time for holding
the meeting or adjourned meeting or (in the case of a poll taken
otherwise than at or on the same day as the meeting or adjourned
meeting) for the taking of the poll at which it is to be used. If you
want to appoint more than one proxy electronically please contact
Computershare Investor Services PLC on 0370 889 4094.
5. Investors holding shares in the Company through the CT Investment
Trust ISA, Lifetime ISA, Junior ISA, Child Trust Fund, General
Investment Account and/or Junior Investment Account should
ensure that forms of direction are returned to Computershare
Investor Services PLC not later than 3.00 p.m. on 16 June 2025.
Alternatively, voting directions can be submitted electronically at
www. eproxyappointment.com by entering the Control Number,
Shareholder Reference Number and PIN as printed on the form of
direction. Voting directions must be submitted electronically no
later than 3.00 p.m. on 16 June 2025.
6. Any person receiving a copy of this notice as a person nominated by
a member to enjoy information rights under section 146 of the Act
(a “Nominated Person”) should note that the provisions in notes 3
and 4 concerning the appointment of a proxy or proxies to attend
the meeting in place of a member do not apply to a Nominated
Person as only Shareholders have the right to appoint a proxy.
However, a Nominated Person may have a right under an agreement
between the Nominated Person and the member by whom he or
she was nominated to be appointed, or to have someone else
appointed, as a proxy for the meeting.
If a Nominated Person has no such proxy appointment right or does
not wish to exercise it, he/she may have a right under such an
agreement to give instructions to the member as to the exercise of
voting rights at the meeting.
7. Pursuant to Regulation 41(1) of the Uncertificated Securities
Regulations 2001 (as amended) and for the purposes of section
360B of the Act, the Company has specified that only those
members registered on the register of members of the Company
at close of business on 20 June 2025 (the “Specified Time”) (or,
if the meeting is adjourned to a time more than 48 hours after the
Specified Time, by 3 p.m. on the day which is two days prior to the
time of the adjourned meeting) shall be entitled to attend and vote
at the meeting in respect of the number of shares registered in
their name at that time. If the meeting is adjourned to a time not
more than 48 hours after the Specified Time, that time will also
86 | European Assets Trust PLC
11. The Company may treat as invalid a CREST Proxy Instruction in the
circumstances set out in Regulation 35(5)(a) of the Uncertificated
Securities Regulations 2001 (as amended).
12. Any corporation which is a member can appoint one or more
corporate representatives who may exercise on its behalf all of its
powers as a member provided that, if it is appointing more than
one corporate representative, it does not do so in relation to the
same shares. It is therefore no longer necessary to nominate a
designated corporate representative.
13. Under section 527 of the Act, members meeting the threshold
requirements set out in that section have the right to require the
Company to publish on a website a statement setting out any
matter relating to:
(a) the audit of the Company’s Accounts (including the auditors’
report and the conduct of the audit) that are to be laid before the
meeting; or
(b) any circumstances connected with an auditor of the Company
ceasing to hold office since the previous meeting at which annual
Accounts and Reports were laid in accordance with section 437 of
the Act.
14. The Company may not require the members requesting any such
website publication to pay its expenses in complying with sections
527 or 528 of the Act. Where the Company is required to place
a statement on a website under section 527 of the Act, it must
forward the statement to the Company’s auditor not later than the
time when it makes the statement available on the website. The
business which may be dealt with at the meeting includes any
statement that the Company has been required under section 527
of the Act to publish on a website.
15. Any member permitted to attend the meeting has the right to ask
questions. The Company must answer any question relating to
the business being dealt with at the meeting put by a member
attending the meeting.
However, members should note that no answer need be given in the
following circumstances:
(a) if to do so would interfere unduly with the preparation of the
meeting or would involve a disclosure of confidential information;
(b) if the answer has already been given on a website in the form
of an answer to a question; or
(c) if it is undesirable in the interests of the Company or the
good order of the meeting that the question be answered.
16. As at 1 April 2025, being the latest practicable date before the
publication of this notice, the Company’s issued capital consisted
of 360,069,279 Ordinary Shares of 10 pence each carrying one
vote each.
Therefore, the total voting rights in the Company as at 1 April 2025
were 360,069,279. No shares are held in treasury.
17. This notice, together with information about the total number of
shares in the Company in respect of which members are entitled to
exercise voting rights at the meeting as at 1 April 2025 being the
latest practicable date prior to the printing of this notice and,
if applicable, any members’ statements, members’ resolutions or
members’ matters of business received by the Company after the
date of this notice, will be available at www.europeanassets.co.uk.
18. Copies of the letters of appointment, which do not constitute
contracts of employment, between the Company and its Directors;
a copy of the Articles of Association of the Company; the register
of Directors’ holdings; and a deed poll relating to Directors’
indemnities will be available for inspection at the registered office
of the Company during usual business hours on any weekday
(Saturdays, Sundays and Bank Holidays excluded) until the date of
the meeting and also on the date and at the place of the meeting
from 15 minutes prior to the commencement of the meeting to the
conclusion thereof.
19. Under sections 338 and 338A of the Act, members meeting the
threshold requirements in those sections have the right to require
the Company:
(a) to give, to members of the Company entitled to receive notice
of the meeting, notice of a resolution which may properly be moved
and is intended to be moved at the meeting, and/or
(b) to include in the business to be dealt with at the meeting any
matter (other than a proposed resolution) which may be properly
included in the business.
20. Such a request may be in hard copy form or in electronic form, and
must identify the resolution of which notice is to be given or the
matter to be included in the business, must be authorised by the
person or persons making it, must be received by the Company not
later than six clear weeks before the meeting, and (in the case of a
matter to be included in the business only) must be accompanied
by a statement setting out the grounds for the request.
Report and Accounts 2024 | 87
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Other Information
Other Financial Information (unaudited)
Securities financing transactions (“SFTR”)
The Company has not, in the year to 31 December 2024 (2023:
same), participated in any: repurchase transactions; securities
lending or borrowing; buy-sell back transactions; margin lending
transactions; or total return swap transactions (collectively called
SFT). As such, it has no disclosure to make in satisfaction of the
UK regulations on transparency of SFT, issued in November 2015.
Alternative Investment Fund Managers (‘AIFM’) Directive
In accordance with the AIFM Directive, information in relation to the
Company’s leverage and the remuneration of the Company’s AIFM,
Columbia Threadneedle Investment Business Limited, is required
to be made available to investors. Detailed regulatory disclosures
including those on the AIFM’s remuneration policy and costs are
available on the Company’s website or from Columbia Threadneedle
Investments on request.
The Company’s Articles of Association allow borrowings up to a
maximum of 20% of its book value of the securities portfolio. The
Company can only exceed this level of borrowing with the prior
approval of shareholders at a general meeting.
The maximum gross leverage is therefore 125% (equivalent to 20%
of the book value of its securities portfolio).
The Company’s maximum and actual leverage levels authorised by
the Financial Conduct Authority (“FCA”) at 31 December 2024 are
shown below:
Leverage
Gross
method
Commitment
method
Maximum limit 200% 200%
Actual 104% 108%
For the purposes of the AIFM Disclosure, leverage is any method
which increases the Company’s exposure, including the borrowing
of cash and the use of derivatives. It is expressed as a percentage
of the Company’s exposure to its net asset value and is calculated
on both a gross and commitment method.
Under the gross method, exposure represents the sum of the
Company’s positions after deduction of cash balances, without
taking account of any hedging or netting arrangements. Under the
commitment method, exposure is calculated without the deduction
of cash balances and after certain hedging and netting positions
are offset against each other.
An Investor Disclosure Document is available on
www.europeanassets.co.uk.
88 | European Assets Trust PLC
Shareholder Information
Warning to Shareholders – Beware of Share Fraud.
Fraudsters use persuasive and high-pressure tactics to lure investors into scams. They may offer to sell to you shares that turn out to be worthless or
non-existent, or to buy your shares at an inflated price in return for an upfront payment following which the proceeds are never received.
If you receive unsolicited investment advice or requests:
• Check the Financial Services Register from fca.org.uk to see if the person or firm contacting you is authorised by the FCA
• Call the Financial Conduct Authority (“FCA”) on 0800 111 6768 if the firm does not have contact details on the Register or you are told they are out
of date
• Search the list of unauthorised firms to avoid at fca.org.uk/scams
• Consider that if you buy or sell shares from an unauthorised firm you will not have access to the Financial Ombudsman Service or Financial Services
Compensation Scheme
• Think about getting independent financial and professional advice
If you are approached by fraudsters please tell the FCA by using the share fraud reporting form at fca.org.uk/scams where you can find out more
about investment scams. You can also call the FCA Consumer Helpline on 0800 111 6768. If you have already paid money to share fraudsters you
should contact Action Fraud on 0300 123 2040.
Dividends
Shareholders who wish to have dividends paid directly into a
bank account rather than by cheque to their registered address
can complete a mandate form for the purpose. Mandates may be
obtained from Computershare Investor Services PLC, The Pavilions,
Bridgewater Road, Bristol, BS99 6ZZ on request. Where dividends
are paid to Shareholders’ bank accounts, dividend tax vouchers are
sent directly to Shareholders’ registered addresses.
Share Price
The Company’s shares are listed on the London Stock Exchange.
Prices are published daily in the Financial Times and other
newspapers and are available on the Company’s website
www.europeanassets.co.uk, and other websites.
Change of Address
Communications with Shareholders are mailed to the address held
on the share register. In the event of a change of address or other
amendment this should be notified to Computershare Investor
Services PLC under the signature of the registered holder.
Website
Additional information regarding the Company may be found at its
website address which is: www.europeanassets.co.uk
Report and Accounts 2024 | 89
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Financial promotion
How to Invest
Charges
Details of the annual account charge along with other charges that apply
can be found on our website www.ctinvest.co.uk.
Annual account charge
ISA/LISA: £60+VAT
GIA: £40+VAT
JISA/JIA/CTF: £25+VAT
You can pay the annual charge from your account, or by Direct Debit (in
addition to any annual subscription limits).
Dealing charges
£12 per fund (reduced to £0 for deals placed through the online
Columbia Threadneedle Investor Portal) for ISA/GIA/LISA/JIA and JISA.
There are no dealing charges on a CTF.
Dealing charges apply when shares are bought or sold but not on the
reinvestment of dividends or the investment of monthly direct debits.
Government stamp duty of 0.5% also applies on the purchase of shares.
The value of investments can go down as well as up and you may
not get back your original investment. Tax benefits depend on your
individual circumstances and tax allowances and rules may change.
Please ensure you have read the full Terms and Conditions, Privacy
Policy and relevant Key Features documents before investing. For
regulatory purposes, please ensure you have read the Pre-sales Cost &
Charges disclosure related to the product you are applying for, and the
relevant Key Information Documents (KIDs) for the investment trusts
you want to invest in, these can be found at www.ctinvest.co.uk/
documents.
How to Invest
To open a new Columbia Threadneedle Savings Plan, apply online at www.
ctinvest.co.uk Online applications are not available if you are transferring
an existing Savings Plan with another provider to Columbia Threadneedle
Investments, or if you are applying for a new Savings Plan in more than
one name but paper applications are available at www.ctinvest.co.uk/
documents or by contacting Columbia Threadneedle Investments.
New Customers:
Call: 0345 600 3030** (9.00am – 5.00pm, weekdays)
Email: invest@columbiathreadneedle.com
Existing Savings Plan Holders:
Call: 0345 600 3030** (9:00am – 5:00pm, weekdays)
Email: investor.enquiries@columbiathreadneedle.com
By post: Columbia Threadneedle Management Limited
PO Box 11114
Chelmsford CM99 2DG
You can also invest in the trust through online dealing platforms for
private investors that offer share dealing and ISAs. Companies include:
AJ Bell, Barclays Stockbrokers, EQi, Fidelity, Halifax, Hargreaves Lansdown, HSBC,
Interactive Investor, Lloyds Bank, The Share Centre
An easy and low cost way to invest in European Assets Trust PLC is through one of the Savings Plans run by Columbia Threadneedle Investments, the
Company’s Investment Manager.
CT Individual Savings Account (ISA)
You can use your ISA allowance to make an annual tax efficient
investment of up to £20,000 for the current tax year with a lump sum
from £100 or regular savings from £25 a month. You can also transfer
any existing ISAs to us whilst maintaining the tax benefits.
CT Junior Individual Savings Account (JISA)*
A tax efficient way to invest up to £9,000 per tax year for a child.
Contributions start from £100 lump sum or £25 a month. JISAs or
CTFs with other providers can be transferred to Columbia Threadneedle
Investments.
CT Lifetime Individual Savings Account (LISA)
For those aged 18-39, a LISA could help towards purchasing your first
home or retirement in later life. Invest up to £4,000 for the current
tax year and receive a 25% Government bonus up to £1,000 per year.
Invest with a lump sum from £100 or regular savings from £25 a
month.
CT General Investment Account (GIA)
This is a flexible way to invest in our range of Investment Trusts. There
are no maximum contributions, and investments can be made from
£100 lump sum or £25 a month per account.
CT Junior Investment Account (JIA)
This is a flexible way to save for a child in our range of Investment
Trusts. There are no maximum contributions, and the plan can easily
be set up under bare trust (where the child is noted as the beneficial
owner) or kept in your name if you wish to retain control over the
investment. Investments can be made from a £100 lump sum or £25 a
month per account. You can also make additional lump sum top-ups at
any time of £100 or more per account.
CT Child Trust Fund (CTF)*
If your child already has a CTF, you can invest up to £9,000 per
birthday year, from £100 lump sum or £25 a month. CTFs with other
providers can be transferred to Columbia Threadneedle Investments.
To find out more,
visit ctinvest.co.uk
0345 600 3030, 9.00am – 5.00pm,
weekdays, calls may be recorded or
monitored for training and quality purposes.
*The CTF and JISA accounts are opened by parents in the child’s name and they have
access to the money at age 18. **Calls may be recorded or monitored for training and
quality purposes.
Capital at risk.
The material relates to an investment trust and its Ordinary Shares are traded on the main market of the London Stock Exchange.
The Investor Disclosure Document, Key Information Document (KID), latest annual or interim reports and the applicable terms & conditions are available from Columbia Threadneedle Investments Cannon Place,
78 Cannon Street, London EC4N 6AG, your financial advisor and/or on our website www.columbiathreadneedle.com. Please read the Investor Disclosure Document before taking any investment decision.
This material should not be considered as an offer, solicitation, advice or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice.
Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness.
In the UK: Issued by Columbia Threadneedle Management Limited, No. 517895, registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.
© 2025 Columbia Threadneedle Investments. WF261998 (01/25) UK. Expiration Date: 31/01/2026
90 | European Assets Trust PLC
Ten Year Record (Unaudited)
As at/for the
year ended
31 December
Share
price
Pence
Share
price
Euro
Net Asset
Value per
share
Pence
Net Asset
Value per
share
Euro
Dividends/
distributions
per share
Euro
Dividends/
distributions
per share
Pence
Euro Total Return Sterling Total Return
Net Asset
Value per
share
%
Benchmark
%
Net Asset
Value per
share
%
Benchmark
%
2015*
∞
112.7 1.529 112.01 1.520 0.07743
†
n/a 26.9 23.5 20.5 17.2
2016*
∞
102.2 1.197 112.19 1.314 0.09429
†
n/a (7.3) 6.4 7.4 23.3
2017*
∞
130.8 1.474 129.85 1.463 0.08220
†
n/a 18.0 18.6 22.6 23.3
2018*
∞
93.0 1.036 102.73 1.140 0.09298
†
n/a (16.3) (13.6) (15.4) (12.7)
2019 110.0 1.300 116.17 1.370 0.07136
†
n/a 26.9 27.8 19.8 20.6
2020 120.3 1.343 132.75 1.480 n/a 7.02 15.4 12.6 21.9 18.9
2021 139.5 1.662 145.93 1.740 n/a 8.00 24.0 22.5 16.3 14.9
2022 91.6 1.032 96.54 1.088 n/a 8.80 (32.0) (22.1) (28.2) (17.7)
2023 89.7 1.035 98.31 1.135 n/a 5.80 10.8 12.4 8.2 9.8
2024 80.8 0.977 91.82 1.110 n/a 5.90 3.9 7.3 (0.8) 2.4
* European Assets Trust NV prior to the migration on 16 March 2019.
∞ For comparison purposes, historical values have been adjusted for the ten for one stock split effective 3 May 2018.
† Dividends prior to 16 March 2019 are shown gross of Dutch withholding tax.
Report and Accounts 2024 | 91
Other Information
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
Alternative Performance Measures
The Company uses the following Alternative Performance Measures (“APMs”). APMs do not have a standard meaning prescribed by GAAP
and therefore may not be comparable to similar measures presented by other entities. No new APMs have been identified or added since
the prior year end.
Discount or Premium – the share price of an Investment Company is derived from buyers and sellers trading their shares on the stock
market. This price is not identical to the Net Asset Value (“NAV”) per share of the Company. If the share price is lower than the NAV per
share, the shares are trading at a discount. This usually indicates that there are more sellers of shares than buyers. The discount is
shown as a percentage of the NAV per share. Shares trading at a price above NAV per share are deemed to be at a premium.
31 December
2024
pence
31 December
2023
pence
Net Asset Value per share (a) 91.82 98.31
Share price (b) 80.80 89.70
Discount (c= (b-a)/a) (c) (12.0%) (8.8%)
Gearing – this is the ratio of the borrowings of the Company to its net assets. Borrowings have a “prior charge” over the assets of a
company, ranking before Ordinary Shareholders in their entitlement to capital and/or income. They may include: preference shares;
debentures; overdrafts and short and long-term loans from banks; and derivative contracts. If the Company has cash assets, these may
be assumed either to net off against borrowings, giving a “net” or “effective” gearing percentage, or to be used to buy investments, giving
a “gross” or “fully invested” gearing figure. Where cash assets exceed borrowings, the Company is described as having “net cash”. The
Company’s maximum permitted level of gearing, currently 20% of net assets, is set by the Board and is described within the Strategic
Report and Directors’ Report.
31 December
2024
£’000
31 December
2023
£’000
Loan 28,938 25,996
Less cash and cash equivalents (12,544) (2,089)
Total (a) 16,394 23,907
Net Asset Value (b) 330,609 353,996
Gearing (c = a/b) (c) 5.0% 6.8%
92 | European Assets Trust PLC
Ongoing Charges – all operating costs expected to be incurred in future and that are payable by the Company, expressed as a proportion
of the average net assets of the Company over the reporting year. The costs of buying and selling investments and derivatives are
excluded, as are interest costs, taxation, non-recurring costs and the costs of buying back or issuing shares.
Ongoing charges calculation
31 December
2024
£’000
31 December
2023
£’000
Management fees 2,606 2,750
Other expenses 1,098 969
Less loan commitment/arrangement fees (32) –
Ad-hoc non-recurring expenses (149) (86)
Total (a) 3,523 3,633
Average net assets (b) 349,257 347,688
Ongoing charges (c = a/b) (c) 1.01% 1.04%
Total Return – the theoretical return to shareholders calculated on a per share basis by adding dividends paid in the period to the
increase or decrease in the Share Price or NAV in the period. The dividends are assumed to have been re-invested in the form of shares or
net asset, respectively, on the date on which the shares were quoted ex-dividend.
Net Asset Value Share price
NAV/Share Price per share at 31 December 2023 (pence) 98.31 89.70
NAV/Share Price per share at 31 December 2024 (pence) 91.82 80.80
Change in the year (6.6%) (9.9%)
Impact of dividend reinvestments 5.8% 6.3%
Total return for the year (0.8%) (3.6%)
Report and Accounts 2024 | 93
Other Information
Strategic Report Governance Report Financial Report Notice of Meeting
Other Information
Chair’s StatementOverview Auditors’ Report
AIC – Association of Investment Companies, is the UK trade body for closed-end investment companies (www.theaic.co.uk).
AIFMD – Alternative Investment Fund Managers Directive requires that all investment vehicles (AIF – Alternative Investment Fund) must
appoint a Depositary and an Alternative Investment Fund Manager. The Directors of the Company nevertheless, remains fully responsible
for all aspects of the Company’s strategy, operations and compliance with regulations.
AIF Manager – The AIF Manager, Columbia Threadneedle Investment Business Limited, is responsible for the provision of investment
management services to the Company.
Auditor – The Auditor is PricewaterhouseCoopers. Every public limited company is required to appoint an auditor during its annual general
meeting to scrutinise the annual accounts and report back to shareholders.
Benchmark – This is a measure against which the Company’s performance is compared. With effect from 1 June 2023 the benchmark
changed from EMIX Smaller European Companies (ex UK) Index (net) to MSCI Europe excluding United Kingdom Small Mid Cap (Net
Return) Index. For the year ended 31 December 2023 a time-apportioned composite of each indices was therefore calculated and
disclosed.
Broker – The Broker is Panmure Liberum. The duties of the Broker include transacting buy or sell orders in the Company’s shares,
maintaining a regular dialogue with core shareholders, and providing advice on trading of the Company’s shares and significant movements
in share price.
Custodian – A specialised financial institution responsible for safeguarding worldwide the listed securities and certain cash assets of the
Company, as well as the income arising therefrom, through provision of custodial, settlement and associated services. The Company’s
custodian is JPMorgan Chase Bank.
Depositary – Under AIFMD rules, the Company must appoint a depositary, whose duties in respect of investments, cash and similar
assets include: safekeeping; verification of ownership and valuation; and cash monitoring. Under AIFMD regulations, the depositary has
strict liability for the loss of the Company’s financial assets in respect of which it has safekeeping duties. The depositary’s oversight
duties include, but are not limited to dividend payments and adherence to investment limits. The Company’s depositary is JPMorgan
Chase Bank.
Discount or Premium – Investment trust shares, at any given point, typically trade at a price which is different to the underlying NAV per
share. They can therefore trade at a “discount” (when the share price is lower than the NAV) or at a “premium” (when the share price is
higher than the NAV). When the share price is equal to the NAV, they are said to be trading “at par”. The share price discount or premium
is expressed as a percentage of the NAV. For example, if the NAV was 100 pence per share and the share price was 90 pence per share,
the share price discount to NAV is 10%. Conversely, if the NAV is 100 pence and the share price is 110 pence, the share price premium
is 10%. The reason share prices deviate from their underlying NAVs is because shares are traded freely in the market and share prices
reflect a multitude of factors besides the underlying NAV, such as market imbalances between buying and selling interest, investors’ views
and expectations of specific trusts and general market sentiment.
Glossary of Terms
94 | European Assets Trust PLC
Dividend – The income from an investment. The Company currently pays dividends to shareholders four times per year in January, April,
July and October. The rate of the dividend is announced in January each year and is set at an annual yield of six per cent to the net
asset value at the end of the preceding year. Since January 2020 the Board has declared the Company’s annual dividend in sterling. The
previous practice was to declare in euros.
Gearing – The Company has the ability to borrow to invest within pre-determined limits. This term is used to describe the level of
borrowings that the Company has undertaken, and is stated as a percentage of net asset value. The higher the level of borrowings, the
higher the gearing ratio.
Leverage – As defined under AIFMD rules, leverage is any method by which the exposure of an AIF is increased through borrowing of cash
or securities or leverage embedded in derivative positions. Leverage is broadly equivalent to Gearing, but is expressed as a ratio between
the assets (excluding borrowings) and the net assets (after taking account of borrowing). Under the gross method, exposure represents
the sum of the Company’s positions after deduction of cash balances, without taking account of any hedging or netting arrangements.
Under the commitment method, exposure is calculated without the deduction of cash balances and after certain hedging and netting
positions are offset against each other.
Market Capitalisation – The stock market value of a company is determined by multiplying the number of shares in issue, excluding those
shares held in treasury, by the market price of the shares.
Net Assets (or Shareholders’ Funds) – This is calculated as the value of the investments and other assets of the Company, plus cash and
debtors, less borrowings and any other creditors. It represents the underlying value of the Company at a point in time.
Ordinary Shares – The Company has only Ordinary Shares in issue. Shareholders are entitled to their share of both income, in the form of
dividends paid by the Company and any capital growth.
Scope 1, 2 and 3 emissions – The building blocks used to measure the carbon emissions and carbon intensity of a company. Under an
international framework called the Greenhouse Gas Protocol these are divided into scope 1, 2 and 3 emissions. Scope 1 emissions are
generated directly by the business (e.g. its facilities and vehicles). Scope 2 covers emissions caused by something a company uses (e.g.
electricity). Scope 3 is the hardest to measure. It covers other indirect emissions generated by the products it produces (e.g. from people
driving the cars a company makes).
Share Price – The value of a share at a point in time as quoted on a stock exchange. The Company’s Ordinary Shares are quoted on the
London Stock Exchange.
European Assets Trust PLC
Report and Accounts
31 December 2024
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