European Opportunities Trust disappointed with H1 returns as strategic reviews gets underway

(Sharecast News) - European Opportunities Trust said it is the "right time" to undertake a strategic review after a "disappointing" performance over its first half, with total returns significantly underperforming the benchmark. The trust, which last week revealed it would review the future of the company, said its net asset value per share fell to 965.37p by 30 November, down 0.4% from the 968.89p reported six months earlier.

The NAV total return, with dividends reinvested, was just 0.2%, which compares with a total return of 10.1% from its benchmark, the MSCI Europe Total Return Index in GBP.

Meanwhile, the share price total return for the period was just 0.9%.

Chair Matthew Dobbs said the "results were clearly disappointing", and that it was the "right time for a review of the future of the company".

The board is now proactively considering a number of options in its strategic review, which could include a possible combination with another closed-ended fund, a cash exit at close to NAV, and a potential roll-over into another open-ended investment company with a similar investment policy, Dobbs said.

"The board acknowledges the ongoing performance challenges and considers that it is likely that the company will not meet the performance condition under the performance-related tender offer scheduled for later this year. The board is also cognisant of the three-yearly continuation vote to be held at this year's annual general meeting."

The stock was down 0.4% at 854p by 1025 GMT.