The full Annual Report and Financial Statements can be accessed via the Company's website at www.theeuropeaninvestmenttrust.com or by contacting the Company Secretary by telephone on 0131 270 3800.
COMPANY SUMMARY Investment objectiveTo achieve long-term capital growth through a diversified portfolio of Continental European securities. A detailed description of the Company's investment policy is set out in the Strategic Report below.
Shareholders' funds£350,659,000 at 30 September 2016.
Market capitalisation£303,837,000 at 30 September 2016.
Capital structureAs at 30 September 2016, the Company had 42,053,550 ordinary shares of 25p each in issue. As at 29 November 2016, the date of this report, there were 42,016,100 ordinary shares in issue.
Investing in the CompanyThe Company's ordinary shares are traded on the London Stock Exchange and the New Zealand Stock Exchange and can be bought or sold through a stockbroker or financial adviser. The ordinary shares are eligible for inclusion in ISAs and SIPPs. The Company's shares are also available on various share trading platforms.
AICThe Company is a member of the Association of Investment Companies ("AIC").
Alternative Investment Fund ManagerEdinburgh Partners AIFM Limited (the "AIFM").
Investment ManagerThe AIFM has delegated the function of managing the Company's investment portfolio to Edinburgh Partners Limited ("Edinburgh Partners" or the "Investment Manager").
Management fee0.55% per annum of the Company's equity market capitalisation payable monthly in arrears.
Ten Year RecordPerformance (rebased to 100 at 30 September 2006) | |||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
NAV per share | 100.0 | 122.7 | 82.0 | 86.7 | 89.0 | 76.6 | 83.5 | 105.1 | 109.5 | 101.5 | 114.0 |
Share price | 100.0 | 122.3 | 78.0 | 83.4 | 82.0 | 69.6 | 76.4 | 103.0 | 112.7 | 101.3 | 108.7 |
Earnings per share | 100.0 | 92.1 | 163.8 | 151.7 | 158.0 | 194.4 | 176.2 | 206.4 | 170.1 | 182.7 | 217.9 |
Dividends per share | 100.0 | 92.2 | 165.6 | 151.1 | 155.6 | 177.8 | 177.8 | 200.0 | 166.7 | 177.8 | 244.4 |
RPI | 100.0 | 103.9 | 109.1 | 107.6 | 112.6 | 118.9 | 122.0 | 125.9 | 128.7 | 129.7 | 132.4 |
Results for year | 30 September 2016 | 30 September 2015 | Change |
Shareholders' funds | £350.7m | £312.2m | 12.3% |
Net asset value per ordinary share ("NAV") | 833.8p | 742.2p | 12.3% |
Share price per ordinary share | 722.5p | 673.0p | 7.4% |
Share price discount to NAV | 13.4% | 9.3% |
Year to 30 September 2016 | Year to 30 September 2015 | |
Revenue return per ordinary share* | 19.0p | 16.0p |
Capital return per ordinary share* | 88.6p | (59.2)p |
Total return per ordinary share* | 107.6p | (43.2)p |
Final dividend per ordinary share** | 16.0p | 14.0p |
Special dividend per ordinary share** | 6.0p | 2.0p |
Total dividend per ordinary share** | 22.0p | 16.0p |
* Based on the weighted average number of shares in issue during the year.
** Proposed dividend for the year.
Year's high/low | Year to 30 September 2016 | Year to 30 September 2015 |
NAV - high | 848.3p | 909.1p |
- low | 645.9p | 729.1p |
Share price - high | 741.0p | 843.5p |
- low | 594.5p | 665.0p |
Share price discount to NAV | ||
- low | 3.2% | 1.7% |
- high | 18.1% | 11.4% |
Performance | Year to 30 September 2016 | Year to 30 September 2015 |
NAV Total Return | 14.9% | (5.5)% |
FTSE All-World Europe ex UK Index Total Return* | 21.8% | (1.8)% |
* In sterling.
The NAV Total Returns are sourced from Edinburgh Partners and include dividends reinvested. The index performance figures are sourced from Thomson Reuters Datastream. Past performance is not a guide to future performance.
Cost of running the Company | Year to 30 September 2016 | Year to 30 September 2015 |
Ongoing charges* | 0.62% | 0.63% |
* Based on total expenses, excluding finance costs and certain non-recurring items for the year and average monthly net asset value.
PORTFOLIO OF INVESTMENTSas at 30 September 2016
Rank 2016 | Rank 2015 | Company | Sector | Country | Valuation £'000 | % of Net Assets 2016 | % of Net Assets 2015 |
1 | 5 | PostNL | Industrials | Netherlands | 17,971 | 5.1 | 3.4 |
2 | 14 | Royal Dutch Shell A | Oil & Gas | Netherlands | 13,629 | 3.9 | 2.9 |
3 | 2 | Roche* | Health Care | Switzerland | 12,857 | 3.7 | 3.6 |
4 | 9 | Total | Oil & Gas | France | 12,782 | 3.6 | 3.2 |
5 | 1 | BNP Paribas | Financials | France | 12,739 | 3.6 | 3.7 |
6 | 16 | Stora Enso | Basic Materials | Finland | 11,937 | 3.4 | 2.7 |
7 | 4 | Bayer | Basic Materials | Germany | 11,577 | 3.3 | 3.5 |
8 | 6 | Novartis | Health Care | Switzerland | 11,526 | 3.3 | 3.4 |
9 | 12 | Sanofi | Health Care | France | 11,525 | 3.3 | 3.0 |
10 | 8 | ENI | Oil & Gas | Italy | 11,485 | 3.3 | 3.2 |
11 | 15 | DIA | Consumer Services | Spain | 11,396 | 3.3 | 2.7 |
12 | - | Ubisoft Entertainment | Consumer Goods | France | 11,395 | 3.2 | - |
13 | - | Nokia | Technology | Finland | 11,374 | 3.2 | - |
14 | 21 | Leoni | Industrials | Germany | 10,968 | 3.1 | 2.6 |
15 | - | Adecco | Industrials | Switzerland | 9,755 | 2.8 | - |
16 | 25 | DNB | Financials | Norway | 9,712 | 2.8 | 2.4 |
17 | 23 | BBVA | Financials | Spain | 9,608 | 2.7 | 2.5 |
18 | - | Michelin | Consumer Goods | France | 9,469 | 2.7 | - |
19 | - | SKF | Industrials | Sweden | 9,429 | 2.7 | - |
20 | 7 | Ryanair | Consumer Services | Ireland | 9,346 | 2.7 | 3.3 |
21 | 26 | Rocket Internet | Financials | Germany | 9,101 | 2.6 | 2.4 |
22 | - | Airbus | Industrials | France | 8,881 | 2.5 | - |
23 | 37 | Ipsos | Consumer Services | France | 8,670 | 2.5 | 1.5 |
24 | 17 | Telecom Italia | Telecommunications | Italy | 8,650 | 2.5 | 2.7 |
25 | - | Siemens | Industrials | Germany | 8,609 | 2.5 | - |
26 | 24 | E.ON | Utilities | Germany | 8,425 | 2.4 | 2.5 |
27 | - | Telefonica | Telecommunications | Spain | 8,388 | 2.4 | - |
28 | 13 | Prysmian | Industrials | Italy | 7,633 | 2.2 | 3.0 |
29 | 34 | Delta Lloyd | Financials | Netherlands | 7,566 | 2.2 | 1.9 |
30 | 36 | Outotec | Industrials | Finland | 7,491 | 2.1 | 1.5 |
31 | 33 | TDC | Telecommunications | Denmark | 7,484 | 2.1 | 1.9 |
32 | - | Danske Bank | Financials | Denmark | 7,458 | 2.1 | - |
33 | 22 | Commerzbank | Financials | Germany | 7,110 | 2.0 | 2.5 |
34 | 18 | Swedbank A | Financials | Sweden | 7,047 | 2.0 | 2.6 |
35 | 32 | Piaggio | Consumer Goods | Italy | 5,631 | 1.6 | 1.9 |
36 | 20 | Unipol | Financials | Italy | 5,548 | 1.6 | 2.6 |
37 | 28 | Petroleum Geo-Services | Oil & Gas | Norway | 5,438 | 1.6 | 2.4 |
38 | - | Uniper | Utilities | Germany | 1,455 | 0.4 | - |
Prior year investments sold during the year | 23.2 |
Total equity investments | 361,065 103.0 98.7 |
Cash and other net current (liabilities)/assets | (190) (0.1) 1.3 |
Borrowings | (10,216) (2.9) - |
Net assets | 350,659 100.0 100.0 |
* The investment is in non-voting preference shares. |
Of the ten largest portfolio investments as at 30 September 2016, the valuations at the previous year end, 30 September 2015, were PostNL £10,732,000; Royal Dutch Shell A £8,999,000; Roche £11,253,000; Total
£10,021,000; BNP Paribas £11,399,000; Stora Enso £8,325,000; Bayer £10,880,000; Novartis £10,649,000; Sanofi £9,373,000; ENI £10,037,000.
Distribution of Investmentsas at 30 September 2016 (% of net assets)
Sector distributionSector | % |
Industrials | 23.0 |
Financials | 21.6 |
Oil and Gas | 12.4 |
Health Care | 10.3 |
Consumer Services | 8.5 |
Consumer Goods | 7.5 |
Telecommunications | 7.0 |
Basic Materials | 6.7 |
Technology | 3.2 |
Utilities | 2.8 |
Cash and other net current liabilities | (0.1) |
Borrowings | (2.9) |
100 |
Country | % |
France | 21.4 |
Germany | 16.3 |
Italy | 11.2 |
Netherlands | 11.2 |
Switzerland | 9.8 |
Finland | 8.7 |
Spain | 8.4 |
Sweden | 4.7 |
Norway | 4.4 |
Denmark | 4.2 |
Ireland | 2.7 |
Cash and other net current liabilities | (0.1) |
Borrowings | (2.9) |
100 |
All of the Directors are non-executive and independent of the AIFM and the Investment Manager. Douglas C P McDougall OBE (Chairman)
William D Eason
Michael W M R MacPhee
Michael B Moule (Senior Independent Director) Dr Michael T Woodward
The European Investment Trust plc published this content on 30 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 November 2016 10:57:04 UTC.
Original documenthttps://www.edinburghpartners.com/wp-content/uploads/2015/09/EUT-Annual-Financial-Results-2016-announced-30-11-16.pdf
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