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European Opportunities Trust PLC

We invest in European equities on behalf of a FTSE 350 investment trust,
European Opportunities Trust PLC and institutional investors.

Devon Equity Management Limited, as the Company’s Investment Adviser, adopts a stock picking approach in the belief that a thorough analysis and understanding of a company is the best way to identify long-term superior growth prospects. This understanding begins with identifying those companies where the ownership structure and incumbent management are conducive to the realisation of the aim of achieving superior long-term earnings growth. The Investment Adviser will seek to identify companies which enjoy certain key business characteristics including some or all of the following:

and the confidence that the Investment Adviser has in that management’s ability to explain and account for its actions.

which indicate a sustainable competitive advantage.

their products or services will enjoy long-term growth.

benefit rather than negatively impact that company’s prospects.

There may be sectors which do not enjoy the business characteristics described above and in such circumstances the Investment Adviser will seek to identify companies that are expected to generate superior earnings growth within that sector.

There may be sectors which do not enjoy the business characteristics described above and in such circumstances the Investment Adviser will seek to identify companies that are expected to generate superior earnings growth within that sector.

In analysing potential investments, the Investment Adviser will employ differing valuation techniques depending on their relevance to the business characteristics of a particular company. However, the underlying feature will be the sustainability and growth of free cashflow in the long-term.

The Company will at all times invest and manage its assets with the objective of spreading risk and in accordance with its published investment policy. In order to comply with the current Listing Rules the Company will not invest in other listed closed-ended investment funds.

Any material change in the investment policy of the Company described above may only be made with the approval of Shareholders by an ordinary resolution.

Manager Style

Alexander Darwall aims to build a portfolio of world class companies that can sustain profit growth and margins over a long period of time. He looks for a proven business model, combined with evidence of entrepreneurial endeavour and the prospects of above average growth opportunities. Once invested, he meets regularly with management to determine whether a company’s strategy is being successfully implemented. All the holdings in his view stand to benefit from multi-year structural growth drivers such as changes in regulation, consumer habits and technology, rather than being reliant on macroeconomic trends. He looks to hold these stocks for the long term and the company, therefore, tends to have a relatively low turnover.

Non-mainstream pooled investment products

The Company currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company’s ordinary shares can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPI).The Company’s ordinary shares are excluded from the FCA’s restrictions which apply to non-mainstream pooled investment products because they are shares in an investment trust.

Dividend Reinvestment Plan

Shareholders may elect for the company’s registrar, Link Asset Services, to reinvest dividends automatically on their behalf.

Dividend Reinvestment Plan Terms and Conditions are available upon request via the Link Shareholder Helpline on 0371 664 0381* (Overseas +44 (0) 371 664 0381*), by email to or through**.

*Calls to this number are charged at the standard geographical rate and will vary by provider. Calls outside of the United Kingdom will be charged at the applicable international rate. Lines are open from 09.00 – 17.30 Monday to Friday. 3rd party calls may be recorded.

**Signal shares also allows you to manage your shareholding online. If you are a direct investor you can view your shareholding, change the way the registrar communicates with you or the way you receive your dividends, and buy and sell shares. If you haven’t used this service before, all you need to do is enter the name of the company and register your account. You’ll need your Investor code (IVC) printed on your share certificate in order to register.

Invest through a financial adviser, stockbroker or bank

We recommend that you discuss any financial decisions with a financial adviser, particularly if you are unsure whether an investment is suitable, as Devon is unable to provide investment advice. A financial adviser can provide advice on and facilitate investment into the company. Consider using or to find a financial adviser near to you.

Invest through an execution-only platform

An investment in an investment trust can also be executed through an execution-only platform. A transaction charge and other charges are payable to the platform for the provision of this service. A selection of platforms are shown below:

Alliance Trust Savings
AJ Bell
Hargreaves Lansdown
Share Centre

When making an investment in an investment trust you are buying shares in a company that is listed on a stock exchange. The price of the shares will be determined by supply and demand. Consequently, the share price of an investment trust may be higher or lower than the underlying net asset value of the investments in its portfolio and there can be no certainty that there will be liquidity in the shares.

Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested.

European Opportunities Trust PLC can borrow money and use it to invest, also known as ‘gearing’ or ‘leveraging’. The risk with gearing is that when the borrowed money has to be repaid the value of the Trust’s investments may not be enough to repay it and any interest and the Trust will make a loss. If the value of the Trust’s investments falls, any invested borrowings will increase the value of this loss. Investors may get back nothing at all if the fall in value is sufficiently large. The company invests in a small number of holdings and as such carries more risk than companies which invest across a larger number of holdings. The company invests mainly in shares and it is likely to experience fluctuations in price which are larger than companies that invest only in bonds and/or cash.

Before making an investment decision, please read the PRIIPS Key Information Document which is available from Devon on request. Past performance is no guide to the future. Company examples are for illustrative purposes only and are not a recommendation to buy or sell.

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