F&C Asset Management : M&A activity key driver for European Assets Trust outperformance

For immediate release

PRESS RELEASE M&A activity key driver for European Assets Trust outperformance LONDON, 6 March 2015 - In its annual results (to 31 December) today, European Assets Trust ('the Company') announced a period of positive performance, boosted by the return of corporate activity to the European smaller companies sector.

Net asset value (NAV) total return per share rose 7.7% in Sterling terms over the period (15.3% in Euros). The Company outperformed its benchmark, the Euromoney Smaller European Companies (ex UK) Index, which returned -1.9% (5.2% in Euros). Over three years, the Company has recorded NAV total return per share of 90.2% in Sterling terms (104.7% in Euros), compared to a benchmark return of 57.7% (69.8% in Euros).
The Company has announced an increase in dividend for 2015 of 8.5%, at Euro 0.7581, per share. This represents an annual dividend equivalent to 6.0% of the net asset value of the Company, at the end of the preceding year. The 2015 dividend will be paid in three equal instalments of Euro
0.2527 per share on 30 January, 29 May and 28 August. The January dividend of Euro 0.2527 per share amounted to 19.33p per share in Sterling terms.
Much of the performance was achieved in the second half when quality assets prevailed as investors took a more measured view of Europe's economic recovery. However, performance was also boosted by the increase in M&A activity in the second half of 2014, with four bids appearing in rapid succession. The biggest contributor came from the Irish airline Aer Lingus, which received a bid from IAG, the owners of British Airways, which had a significant impact on the share's return of
+64.7% (Sterling). However, given the revival of corporate activity across the European smaller companies sector, other strong performers included: Jazztel, the Spanish broadband supplier, which increased +50.5%, following a bid from Orange; Exact the Dutch software provider, which rose +30.2%, following a bid from a private equity business; and Nutreco, the Dutch animal nutrition business, which was bought by a wealthy Dutch family.
Commenting on the investment outlook, fund manager, Sam Cosh, said:
"2015 has started strongly for European equities. The latest European Central Bank intervention and announcement of quantitative easing, combined with a decent result from the Purchasing Manager's Index, has helped to renew some optimism in the region. Heading into the year though, expectations for European economic growth, and corporate earnings progress, were excessively low. This was reflected in the strong performance of quality assets in the second half of last year, as investors searched for a combination of scarce growth and yield.
"While we do not want to base our stock decisions on expectations of economic growth, smaller companies should benefit from any improvement in the domestic European economy. We will continue to trust in the philosophy and process as we believe that this is the best way to deliver good performance at an attractive level of risk, and will continue to employ this strategy irrespective of prevailing economic conditions."

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The manager made use of the gearing facility during 2014 where investment opportunities arose. At the year-end the Company was 6% geared.

Highlights of the European Assets Trust annual results, to 31st December 2014, include:

 Net asset value total return per share up 7.7% in Sterling terms (15.3% in Euros)

 Three year NAV total return per share of 90.2% in Sterling terms (104.7% in Euros), compared to a benchmark return of 57.7% (69.8% in Euros)

 Increase in dividend for 2015 of 8.5%, at Euro 0.7581 per share

 Annual dividend equivalent to 6% of the net asset value of the Company

 At the year-end the Company was 6% geared

About European Assets Trust NV:

 A closed-ended investment company listed in London and Amsterdam

 Managed by Sam Cosh at F&C Investments in London

 The Company sits in the Association of Investment Companies' European Smaller

Companies sector, and is benchmarked against the Euromoney Smaller European
Companies (ex UK) Index

 European Assets Trust seeks to generate attractive long-term capital growth through investment in quoted small and medium-sized companies in Europe, excluding the UK. As well as capital growth the company aims to offer an attractive dividend, with payments made in January, May and August of each year

The full results statement is attached. For more information, please call the F&C press office on
020 7269 9383, or email [e-mail].

Notes to editors: ENDS About F&C Investments, a part of BMO Global Asset Management

F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative investments, liability driven investments, multi-manager, private equity funds and Environmental Social and Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.
F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.
F&C is a part of BMO Global Asset Management, a global investment manager delivering service excellence from 24 offices in 14 countries to clients across five continents. BMO Global Asset Management had approximately US$272 billion in assets under management, as of October 31,
2014. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organisation with C$522 billion total assets and more than 47,000
employees as of October 31, 2014.

Disclaimer

Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount inve sted. The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. F&C Group Companies may from time to time deal in investments mentioned herein on behalf of their clients. The source of information in all graphs is F&C unless otherwise stated. F&C Management Limited is authorised

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and regulated by the Financial Conduct Authority FRN: 119230 F&C Management Limited is a member of the F&C Group. The F&C Group is wholly owned by BMO Global Asset Management (Europe) Limited, which is itself a wholly owned subsidiary of the Bank of Montreal. F&C, the F&C logo, REO and the 'reo' logo are registered trademarks of F&C Asset Management plc. F&C Investments and the F&C Investments logo are trademarks of F&C Management Limited. © Copyright F&C Management Limited 2015. All Rights Reserved. Neither this document nor any part of it may be reproduced by any party whether by photocopying or storing in any m edium by electronic means or otherwise without the prior approval of F&C Management Limited.

F&C Management Ltd accepts no liability in respect of the information or any views expressed herein which may be subject to c hange without notice at any time.

-Ends- Media Contacts:

Richard Janes
Director, Communications [e-mail]: [phone]
[e-mail]
Tel: [phone]

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