European Opportunities Trust plans to close

European Opportunities Trust aims to invest in high-quality companies that offer good growth potential over the long run. The trust invests in companies across Europe, including the UK. It’s mostly focused on larger companies but invests in some medium-sized ones, too.

Following a period of weaker performance and the trust trading at a discount to its NAV (Net Asset Value) persistently in recent years, the board carried out a strategic review of the trust to ensure that value is being delivered to shareholders.

The proposal to close the European Opportunities Trust, along with options available to investors, are subject to shareholder approval. This will be sought at a general meeting on 28 July 2026. Details on how to vote on the proposal are below, and the deadline for submitting votes electronically is 24 July. If the proposal is accepted, investors will be able to choose from three options on exiting the trust:

• roll over shares to the JPMorgan European Growth & Income trust

• roll over shares to an open-ended LT European Opportunities fund

• receive cash, calculated at the trust’s NAV less 2%

The LT European Opportunities fund will be a new fund, managed by Alexander Darwall, manager of the European Opportunities Trust since it launched in 2000. The investment objective and process of the new fund will remain the same as that currently used by the trust. There would be some adjustment as the trust has the flexibility to use gearing which adds risk and any new fund would not do so.

Devon Equity Management, the trust’s investment manager and founded by Darwall in 2019, was acquired by River Global last year. River Global has since been acquired by Liontrust, which plans to launch the LT European Opportunities fund.

The JPMorgan European Growth & Income trust uses a different investment process. Notably, the trust doesn’t invest in UK companies. The trust also uses an enhanced dividend policy, committing to pay dividends equal to 4% of NAV each year (as always, no dividend is guaranteed). Alexander Fitzalan Howard has managed the trust since 2006. He’s supported by co-managers Zenah Shuhaiber and Timothy Lewis.

The default option for investors upon closure of the European Opportunities Trust is for shares to be rolled over to the JPMorgan European Growth & Income trust. Should the proposal be accepted by shareholders, it’s expected that the European Opportunities Trust will close on 7 August 2026.

This information isn’t personal advice. We can’t advise on which way you should vote. If you’re unsure what to do, please seek advice. All investments can fall as well as rise in value, so you could get back less than you invested.

How to give an instruction

You’ll be taken to a website managed by a third party called Broadridge to complete your instruction. HL is not responsible for the content on this website.

Full details on how to vote can be found here - AGMs and Shareholder Voting.