EUROPEAN ASSETS TRUST PLC

Annual Report • Apr 14, 2025

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 Report and Accounts 2024 | 13 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting 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. Report and Accounts 2024 | 15 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting 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%) Report and Accounts 2024 | 17 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting 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 Report and Accounts 2024 | 19 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting Other Information 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 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting 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 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting 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 Report and Accounts 2024 | 25 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting Other Information 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 Report and Accounts 2024 | 27 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting Other Information Chair’s StatementOverview Auditors’ Report 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 Report and Accounts 2024 | 29 Strategic Report Strategic Report Governance Report Financial Report Notice of Meeting Other Information 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. Report and Accounts 2024 | 39 Strategic Report Governance Report Financial Report Notice of Meeting 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 Strategic Report Governance Report Financial Report Notice of Meeting 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 Report and Accounts 2024 | 43 Strategic Report Governance Report Financial Report Notice of Meeting 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 Strategic Report Governance Report Financial Report Notice of Meeting 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 Independent Auditors’ Report 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 Independent Auditors’ Report Strategic Report Governance Report Financial Report Notice of Meeting 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. Report and Accounts 2024 | 63 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. Report and Accounts 2024 | 65 Strategic Report Governance Report Financial Report Notice of Meeting 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) Report and Accounts 2024 | 67 Strategic Report Governance Report Financial Report Notice of Meeting Other Information 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) Report and Accounts 2024 | 69 Strategic Report Governance Report Financial Report Notice of Meeting 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) Report and Accounts 2024 | 71 Strategic Report Governance Report Financial Report Notice of Meeting 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 Report and Accounts 2024 | 73 Strategic Report Governance Report Financial Report Notice of Meeting Other Information 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 Report and Accounts 2024 | 75 Strategic Report Governance Report Financial Report Notice of Meeting Other Information Chair’s StatementOverview Auditors’ Report 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 To find out more visit columbiathreadneedle.com © 2025 Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Contact us Registered office: Cannon Place, 78 Cannon Street, London EC4N 6AG 0131 573 8300 europeanassets.co.uk invest@columbiathreadneedle.com Registrars: Computershare Investor Services PLC The Pavilions, Bridgwater Road Bristol BS99 6ZZ 0370 889 4094 computershare.com web.queries@computershare.co.uk