European Opportunities Trust – ‘Special’ growth companies

With its strong focus on growth, European Opportunities Trust (EOT) has faced significant headwinds during the last couple of years. Inflation now seems to be retreating, but with growing signs of a recession in Europe, sentiment appears to be poor. Valuations of European equities look cheap relative to their history and global markets. EOT’s portfolio is made up of what its manager describes as ‘special’ growth companies that it feels benefit from strong IP, an advantageous industry structure, strong balance sheets, high recurring revenues, and multiple avenues for growth. It believes that these should weather an economic downturn and may outperform over the longer-term. If so, the current discount may offer an attractive entry point, especially as EOT’s board intends to provide shareholders with a 25% tender offer in 2026, assuming the continuation vote passes at the upcoming AGM.