LONDON (Alliance News) - The European Investment Trust PLC Tuesday said it is still able to find "interesting new investment opportunities", after its net asset value rose in the first-quarter.
The trust, which aims for long-term capital growth through holding a diverse portfolio of continental European securities, said its net asset value grew to GBP252.3 million in the three months to end-December, from GBP323.2 million a year earlier.
The trust said European equity markets had had a "very good year", but said corporates would have to deliver on the "implied" profit improvement.
"However, we are still able to find a number of interesting new investment opportunities in Europe on reasonable valuations," the trust said in a statement. "Whilst we are still able to do this, we will continue to remain fully invested."
Holdings in Mediaset España and Metro were both sold after the trust deemed their "risk-reward profile had turned negative". The trust said the shares had been bought when "firmly out of favour".
Meanwhile, shares in Royal Dutch Shell and Dutch telecom operator KPN were acquired, with the trust stating that the companies have lost favour with other investors.
The trust was particularly bullish on the telecoms sector.
"In particular, the combination of low valuation and two specific catalysts, namely, an improvement in regulation as well as the possibility of consolidation within the sector, makes the telecom
sector one of the most attractive in Europe," it said in a statement, as its total exposure to the sector reached 14.9% at the end of December.
The European Investment Trust shares were Tuesday quoted at 741.30 pence, up 3.30 pence, or 0.5%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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