LONDON (Alliance News) - The European Investment Trust PLC Wednesday said its net asset value total return, which includes dividends reinvested, outperformed its comparative index over the half-year.
The trust, whose objective is to achieve long-term capital growth through a diversified portfolio of continental European securities, said its NAV total return over the six months ended March 31 was 13.9%, compared with the FTSE All-World Europe ex UK Index in sterling's 7.7% total return.
At the end of March, the company's NAV was 856.40 pence, an increase of 11.5% on the NAV at the end of September 2013.
During the six-month period, the company's share price increased by 12.9% to 773.00 pence. The share price total return was 15.7%. The share price discount to NAV narrowed to 9.7%, from 10.9%.
"Stock markets have moved ahead in anticipation of a recovery in profits in European companies. Whilst this is normal at this stage in an economic cycle, it does mean that aggregate valuations have now run slightly ahead of events," Edinburgh Partners Ltd's Dale Robertson, the investment manager, said in a statement.
"If European stock markets continue to appreciate in value, your portfolio is likely to see more [...] rotation [...] disposing of what are considered to be overvalued stocks and reinvesting in stocks with a lower risk profile which are considered to offer better value. Unless valuations generally reach what we would consider to be over-inflated levels, we will continue to remain fully invested," Robertson added.
European Investment Trust shares were Wednesday quoted at 773.94 pence, up 0.4%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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