20th Sep 2024 09:19
(Alliance News) - European Opportunities Trust PLC on Friday said its net asset value per share has risen over the last 12 months, driven partly by the impact of artificial intelligence on US and European technology stocks.
European Opportunities Trust invests in European companies offering capital growth and is managed by Devon Equity Management Ltd.
It reported a net asset value per share of 1,008.48 pence at the end of the year ended May 31, rising 15% on-year from 876.46p. Net asset value total return per share was approximately 16%, in comparison to the benchmark which returned 17%.
The company declared a final dividend per share of 2.00p, falling 43% on-year from 3.50p.
Investment Manager Alexander Darwall from Devon Equity Management said: "The brightest element behind the strong equity market performance was the impact of artificial intelligence. Whilst principally an American phenomenon, European technology stocks, too, were lifted by the opportunities this will bring. The benefits of AI were recognised in other sectors, where proprietary intellectual property can be leveraged with AI. Notwithstanding the productivity gains from these technological advances, corporate earnings growth in Europe is modest.
"Earnings in 2023 declined slightly, whereas consensus aggregate earnings for 2024 anticipate about 3-5% growth. As in the US, much of the growth is coming from technology and communications services. For the markets more broadly, rising real wages are squeezing corporate margins."
Matthew Dobbs, chair of European Opportunities Trust, said: "Through the superior characteristics and earnings growth prospects of the underlying portfolio, we are confident that the company is well positioned to offer an attractive investment proposition. We are not, however, complacent and we acknowledge that the five and three year relative returns have been below par."
Shares in European Opportunities Trust were down 0.7% at 885.84 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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