THE EUROPEAN INVESTMENT TRUST PLC: Half-yearly Report

THE EUROPEAN INVESTMENT TRUST PLC
HALF-YEARLY FINANCIAL REPORT
FOR THE HALF-YEAR ENDED 31 MARCH 2013 
The Directors announce the unaudited Half-Yearly Financial Report for the
half-year ended 31 March 2013 as follows:- 
Copies of the Half-Yearly Report can be obtained from the following websites: 
www.theeuropeaninvestmenttrust.com and www.edinburghpartners.com. 
FINANCIAL SUMMARY 
                                31 March    30 September          
                                    2013            2012      Change         
Capital                                                                     
                                                                       
Net assets                           £287.68m        £256.72m       12.1% 
                                                                       
Net asset value per share             683.83p         610.24p       12.1%
("NAV")                                                                     
                                                                       
Share price                           588.00p         508.00p       15.7% 
                                                                       
Share price discount to NAV             14.0%           16.8%             


                                 Six months to          Year to   
                                      31 March     30 September   


                                      2013             2012   
Total return per ordinary share*                                
Capital                                  86.21p           50.62p  
                                                           
Revenue                                   3.39p           15.38p  
                                                           
Total                                    89.60p           66.00p  
                                                           
* Based on the weighted average number of shares in issue      
during the period.                                              
                                                           
PERFORMANCE                                                     


                                                               
                                 Six months to          Year to   
                                      31 March     30 September   
                                          2013             2012   


                                                           
NAV Total Return                          14.8%            12.1% 
                                                           
FTSE All-World Europe ex                                        
                                                           
UK Index Total Return*                    18.4%            12.5% 
                                                           
* In sterling.                                                  
The NAV Total Returns are sourced from Edinburgh Partners and include dividends
reinvested. The index performance figures are sourced from Thomson Reuters
Datastream. Past performance is not a guide to future performance. 
OBJECTIVE AND INVESTMENT POLICY 
Objective 
The objective of The European Investment Trust plc is to achieve long-term
capital growth through a diversified portfolio of Continental European
securities. 
Investment Policy 
The Board believes that investment in the diverse and increasingly accessible
markets of this region provides opportunities for capital growth over the long
term. At the same time it considers the structure of the Company as a UK listed
investment trust, with a fixed capital and an independent Board of Directors,
to be well suited to investors seeking longer-term returns. 
The Board recognises that investment in some European countries can be riskier
than in others. Investment risks are diversified through holding a wide range
of securities in different countries and industrial sectors. No more than 10%
of the value of the portfolio in aggregate may be held in securities in those
countries which are not included in the FTSE All-World European indices. 
The Board has the authority to hedge the Company's exposure to movements in the
rate of exchange of currencies, principally the Euro, in which the Company's
investments are denominated, against sterling, its reporting currency. However,
it is not generally the Board's practice to do this and the portfolio is not
currently hedged. 
No investments in unquoted stocks can be made without the prior approval of the
Board. The level of gearing within the portfolio is agreed by the Board and
should not exceed 20% in normal market conditions. 
No more than 10% of the total assets of the Company may be invested in other
listed investment companies (including investment trusts) except in such other
investment companies which themselves have stated that they will invest no more
than 15% of their total assets in other listed investment companies, in which
case the limit is 15%. 
The Investment Manager's compliance with the limits set out in the investment
policy is monitored by the Board. 
INVESTMENT MANAGER'S REVIEW 
Results 
The net asset value per share ("NAV") at 31 March 2013, the Company's half-year
end, was 683.83p, an increase of 12.1% on the NAV at 30 September 2012 of
610.24p. After including the special and final dividends totalling 16.0p per
share which were paid in January 2013, the total return per share was 14.8% for
the six month period. The total return from the FTSE All-World Europe ex UK
Index in sterling was 18.4%. 
Share price and discount 
During the six months to 31 March 2013, the Company's share price increased by
15.7% from 508p to 588p, whilst the share price discount to NAV narrowed from
16.8% to 14.0%. 
Revenue 
The net revenue return per share in the period was 3.39p, an increase on the
net revenue return per share of 1.03p in the six months to 31 March 2012. This
was partly due to a substantial rise in dividend income, with a number of
portfolio companies raising their dividends; however, the principal reason for
the increase was a special dividend payment received from Ryanair, one of the
Company's largest investments. In the year to 30 September 2012, the net
revenue return per share was 15.38p. Shareholders should be aware that the
revenue return for the half-year is not indicative of the full year return, as
many European companies pay their dividends between April and September while
the expenses of running the Company are incurred on a more even basis
throughout the financial year. 
Economic and market overview 
Since the global financial crisis in 2008, investment sentiment has been
dominated by fear, with a focus almost exclusively on risk. Accordingly, there
has been a flight by investors to any kind of investment where there appear to
be the fewest unknowns. This is most obvious in the unprecedented bond bull
market, which has been boosted by quantitative easing; however, we have also
seen a similar impact in equity markets. 
Your portfolio has held a number of companies with more predictable profit
streams. However, over the last 12 to 18 months we have gradually reduced this
exposure. Examples of disposals of this kind include Unilever, Syngenta,
Pernod-Ricard, Amadeus and Sanofi. 
We have reduced this exposure for two related reasons. Firstly, the valuation
gap between companies with safe and predictable earnings and companies with
more volatile earnings has expanded to extreme levels. Secondly, although some
countries throughout the world are struggling to repair their fiscal
indebtedness after the crisis, the global economy as a whole is displaying a
fair degree of resilience. When signs of renewed stability in the global
economy are appreciated, we anticipate that this will be met with a significant
change in investor perception. From a European perspective, we believe that,
whilst progress has not been, nor will be, in a straight line, Europe is moving
in the right direction and the possibility of a financial crisis has reduced. 
Your portfolio has been building positions in out-of-favour areas such as
telecoms, financials and the peripheral economies of Europe where valuations in
many cases are at extremely low levels, even allowing for the greater
volatility in corporate earnings. 
Whilst it is pleasing to report a 14.8% increase in the NAV total return in the
six months to 31 March 2013, it is nevertheless disappointing that we lag the
index, which returned 18.4% during the period. Timing a move away from the
mainstream consensus is never easy and it is clear that so far we have been too
early in making our portfolio moves. Taking a contrary view is something many
investors find difficult; however, having made this move, we believe that we
have both valuation and investment history on our side. 
Outlook 
Equity markets have risen over the period under review and valuations can no
longer be described as cheap. However, we continue to believe that the
long-term outlook for European equity markets remains positive, particularly
when compared to what we consider to be overvalued bond markets given the
possibility of the longer-term risk of inflation. As a consequence, we believe
a fully invested but ungeared portfolio is appropriate. 
Dale Robertson
Edinburgh Partners Limited
28 May 2013 
PORTFOLIO OF INVESTMENTS
as at 31 March 2013 
                                                     Valuation   % of Net    
Rank     Company         Sector                 Country      £'000     Assets   
                                                                                
1   (3)  Gerresheimer    Health Care            Germany     10,034   3.5   
(3.2) 
                                                                             
2   (7)  DCC             Industrials            Ireland      9,615   3.3   
(2.9) 


                                                                                

3   (14) Kabel           Consumer Services      Germany      9,271   3.2   
(2.7)
         Deutschland                                                            
                                                                                

4   (10) Wirecard        Industrials            Germany      9,245   3.2   
(2.8)
                                                                                

5   (19) Mediaset España Consumer Services        Spain      9,224   3.2   
(2.6)
                                                                                

6   (-)  Ziggo           Telecommunications Netherlands      8,473   2.9     (-
)
                                                                                

7   (36) A.P.            Industrials            Denmark      8,140   2.8   
(1.9)
         Moller-Maersk                                                          
                                                                                

8   (1)  Ryanair         Consumer Services      Ireland      7,753   2.7   
(3.5)
                                                                                

9   (26) Ahold           Consumer Services  Netherlands      7,706   2.7   
(2.3)
                                                                                

10  (-)  Danske Bank     Financials             Denmark      7,660   2.7     (-
)
                                                                                

11  (11) Swatch          Consumer Goods     Switzerland      7,542   2.6   
(2.8)
                                                                                

12  (23) ABB             Industrials        Switzerland      7,434   2.6   
(2.4)
                                                                                

13  (8)  D'Ieteren       Consumer Services      Belgium      7,414   2.6   
(2.9)
                                                                                

14  (25) Safran          Industrials             France      7,412   2.6   
(2.3)
                                                                                

15  (24) Prysmian        Industrials              Italy      7,407   2.6   
(2.4)
                                                                                

16  (15) ENI             Oil & Gas                Italy      7,328   2.5   
(2.7)
                                                                                

17  (-)  Nutreco         Consumer Goods     Netherlands      7,281   2.5     (-
)
                                                                                

18  (32) Heineken        Consumer Goods     Netherlands      7,088   2.5   
(2.0)
                                                                                

19  (29) Novartis        Health Care        Switzerland      6,991   2.4   
(2.2)
                                                                                

20  (6)  Swedbank        Financials              Sweden      6,965   2.4   
(2.9)
                                                                                

21  (35) Piaggio         Consumer Goods           Italy      6,929   2.4   
(1.9)
                                                                                

22  (5)  Vivendi         Consumer Services       France      6,923   2.4   
(3.0)
                                                                                

23  (-)  Indra Sistemas  Technology               Spain      6,876   2.4     (-
)
                                                                                

24  (4)  Belgacom        Telecommunications     Belgium      6,857   2.4   
(3.1)
                                                                                

25  (-)  France Telecom  Telecommunications      France      6,770   2.4     (-
)
                                                                                

26  (28) Ipos            Consumer Services       France      6,701   2.3   
(2.2)
                                                                                

27  (20) Orkla           Industrials             Norway      6,699   2.3   
(2.5)
                                                                                

28  (17) Intesa Sanpaolo Financials               Italy      6,663   2.3   
(2.6)
                                                                                

29  (18) Michelin        Consumer Goods          France      6,569   2.3   
(2.6)
                                                                                

30  (31) BBVA            Financials               Spain      6,536   2.3   
(2.2)
                                                                                

31  (-)  BNP Paribas     Financials              France      6,362   2.2     (-
)
                                                                                

32  (16) Gazprom         Oil & Gas               Russia      6,324   2.2   
(2.7)
                                                                                

33  (33) Metro           Consumer Services      Germany      6,180   2.2   
(2.0)
                                                                                

34  (12) SAP             Technology             Germany      6,103   2.1   
(2.8)
                                                                                

35  (22) Total           Oil & Gas               France      5,894   2.1   
(2.4)
                                                                                

36  (9)  CAF             Industrials              Spain      5,786   2.0   
(2.8)
                                                                                

37  (13) GEA             Industrials            Germany      5,779   2.0   
(2.8)
                                                                                

38  (-)  Azimut          Financials               Italy      4,494   1.6     (-
)
                                                                                

39  (-)  Kuka            Industrials            Germany      2,690   0.9     (-
)
                                                                                

Prior year investments sold during the period                             
(15.3)
                                                                                

Total equity investments                                   277,118  96.3  
(95.4)
                                                                                

Cash and other net assets                                   10,566   3.7   
(4.6)
                                                                                

Net assets                                                 287,684 100.0 
(100.0)
                                                                                


The figures in brackets represent the position as at 30 September 2012.

The geographical distribution is based on each investment's principal stock
exchange listing, except in instances where this would not give a proper
indication of where its activities predominate.

DISTRIBUTION OF INVESTMENTS

as at 31 March 2013 (% of net assets)

Sector distribution

Sector                                       %   


                                            
Industrials                                24.3% 
                                            
Consumer Services                          21.3% 
                                            
Financials                                 13.5% 
                                            
Consumer Goods                             12.3% 
                                            
Telecommunications                          7.7% 
                                            
Oil & Gas                                   6.8% 
                                            
Health Care                                 5.9% 
                                            
Technology                                  4.5% 
                                            
Cash and other net assets                   3.7% 
                                             
                                      100.0% 
Geographical distribution 
Country                                      %    
                                            
Germany                                    17.1% 
                                            
France                                     16.3% 
                                            
Italy                                      11.4% 
                                            
Netherlands                                10.6% 
                                            
Spain                                       9.9% 
                                            
Switzerland                                 7.6% 
                                            
Ireland                                     6.0% 
                                            
Denmark                                     5.5% 
                                            
Belgium                                     5.0% 
                                            
Sweden                                      2.4% 
                                            
Norway                                      2.3% 
                                            
Russia                                      2.2% 
                                            
Cash and other net assets                   3.7% 
                                             
                                      100.0% 
The geographical distribution is based on each investment's principal stock
exchange listing, except in instances where this would not give a proper
indication of where its activities predominate. 
DIRECTORS' STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES 
The important events that have occurred during the period under review and the
key factors influencing the Financial Statements are set out in the Investment
Manager's Review above. The principal factors that could impact the remaining
six months of the financial year are also detailed in the Investment Manager's
Review. Additional Risk Factors are set out below. 
The Board considers that the following are the principal risks associated with
investing in the Company: investment and strategy risk, discount volatility
risk, market risk (comprising interest rate risk, currency risk and other price
risk), liquidity risk, credit risk, gearing risk, regulatory risk, operational
risk and financial risk. These risks, and the way in which they are managed,
are described in more detail under the heading "Principal risks and
uncertainties" within the Directors' Report and Business Review in the
Company's Annual Report and Financial Statements for the year ended 30
September 2012. The Company's principal risks and uncertainties have not
changed materially since the date of that report. 
DIRECTORS' STATEMENT OF RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS 
The Directors confirm that to the best of their knowledge: 
•  The condensed set of Financial Statements has been prepared in accordance   
 with the statement on Half-Yearly Financial Reports issued by the UK         
Accounting Standards Board and gives a true and fair view of the assets,     
liabilities, financial position and profit of the Company.                   
                                                                           
•  This Half-Yearly Financial Report includes a fair review of the 
information  
required by:                                                                 
                                                                            
a)   4.2.7R of the Disclosure and Transparency Rules, being an indication of 


        important events that have occurred during the first six months of the 
        financial year and their impact on the condensed set of Financial      
        Statements; and a description of the principal risks and uncertainties 
        for the remaining six months of the year; and                          


                                                                            
b)   4.2.8R of the Disclosure and Transparency Rules, being related party    


        transactions that have taken place in the first six months of the      
        current financial year and that have materially affected the financial 
        position or performance of the Company during that period; and any     
        changes in the related party transactions described in the last Annual 
        Report that could do so.                                               

The Half-Yearly Financial Report was approved by the Board of Directors on 28
May 2013 and the above responsibility statement was signed on its behalf by
Douglas McDougall, Chairman.

INCOME STATEMENT (UNAUDITED)

for the six months to 31 March 2013


             Six months to             Six months to                    
Year to      
                  31 March                  31 March               30 
September       
                      2013                      2012                       
2012  
          Revenue  Capital   Total  Revenue  Capital    Total  Revenue  
Capital   Total 
 Note           £'000    £'000   £'000    £'000    £'000    £'000    
£'000    £'000   £'000  
Gains on            -   36,206  36,206        -   27,459   27,459        -   
21,758   21,758 
investments                                                                      
                                                                                 
Foreign            42       60     102      (22)    (125)    (147)     (67)    
(410)    (477)
exchange                                                                         


    gains/                                                                          
    (losses)                                                                        
                                                                                    


Income        2 2,450        -   2,450    1,479        -    1,479    9,045      
  -    9,045  
                                                                             
Investment       (644)       -    (644)    (591)       -     (591)  (1,157)     
  -   (1,157)
management                                                                       


    fee                                                                             
                                                                                    


Other            (202)       -    (202)    (212)       -     (212)    (396)     
  -     (396)
expenses                                                                         
                                                                                 
Net return      1,646   36,266  37,912      654   27,334   27,988    7,425   
21,348   28,773 
before                                                                           


    finance                                                                         
    costs and                                                                       
    taxation                                                                        
                                                                                    


Finance           (63)       -     (63)     (63)       -      (63)    (124)     
  -     (124)
costs                                                                            
                                                                                 
Net return      1,583   36,266  37,849      591   27,334   27,925    7,301   
21,348   28,649 
on ordinary                                                                      


    activities                                                                      
    before                                                                          
    taxation                                                                        
                                                                                    


Taxation on 3    (158)       -    (158)    (157)       -     (157)    (814)     
  -     (814)
ordinary                                                                         


    activities                                                                      
                                                                                    


Net return      1,425   36,266  37,691      434   27,334   27,768    6,487   
21,348   27,835 
after                                                                            
taxation                                                                         
                pence    pence   pence    pence    pence    pence    pence    
pence    pence
Return per       3.39    86.21   89.60     1.03    64.66    65.69    15.38    
50.62    66.00
ordinary                                                                         
share*                                                                           

The total column of the statement is the Profit and Loss Account of the
Company. The revenue return and capital return columns are supplementary 
to this and are prepared in accordance with guidance issued by the Association
of Investment Companies ("AIC"). 
All revenue and capital items in the above statement derive from continuing
operations. 
A separate Statement of Recognised Gains and Losses has not been prepared as
all such gains and losses are included in the Income Statement. 
* The return per share for the six months to 31 March 2013 is based on the net
revenue return after taxation of £1,425,000 (six months to 31 March 2012: £
434,000; year to 30 September 2012: £6,487,000) and the net capital return
after taxation of £36,266,000 (six months to 31 March 2012: £27,334,000; year
to 30 September 2012: £21,348,000) and on 42,069,371 (six months to 31 March
2012: 42,276,153; year to 30 September 2012: 42,172,762) shares, being the
weighted average number of shares in issue during the period. 
BALANCE SHEET (UNAUDITED) 
as at 31 March 2013 


                                            31 March    31 March  30 September
                                                2013        2012          2012


                               Note        £'000       £'000         
£'000
Fixed assetinvestments                                                         
                                                                          
Investments at fair value through            277,118     253,691       244,923
profit or loss                                                                 
                                                                          
Current assets                                                                 
                                                                          
Debtors                                          343         722            96 
                                                                          
Taxation recoverable                             492         277           569 
                                                                          
Cash at bank                                  10,196       2,462        12,651 


                                                                              
                                              11,031       3,461        13,316


                                                                          
Creditors:amounts falling due                    465         494         1,515
within one year                                                                
                                                                          
Net current assets                            10,566       2,967        11,801 
                                                                          
Net assets                                   287,684     256,658       256,724 
                                                                          
Capital and reserves                                                           
                                                                          
Called-up share capital              4        10,517      10,517        10,517 
                                                                          
Share premium account                        123,749     123,749       123,749 
                                                                          
Capital redemption reserve                     8,294       8,294         8,294 
                                                                          
Capital reserve                              139,363     109,084       103,097 
                                                                          
Revenue reserve                                5,761       5,014        11,067 
                                                                          
Total equity shareholders' funds             287,684     256,658       256,724 


                                                                              
                                               pence       pence         pence


                                                                          
Net asset value per ordinary share   6        683.83      610.08        610.24 
CASH FLOW STATEMENT (UNAUDITED) 
for the six months to 31 March 2013 
                                      Six months   Six months            
Year   
                                              to           to              
to    
                                        31 March     31 March    30 
September        
                                            2013         2012            
2012  
                            Note           £'000        £'000           
£'000 
Operating activities                                                            
                                                                           
Investment income received                     2,492        1,149           
8,979  
                                                                           
Investment management fees                      (602)        (589)         
(1,166)
paid                                                                            
                                                                           
Other cash payments                             (299)        (235)           
(422) 
                                                                           
Net cash inflow from operating   7             1,591          325           
7,391 
activities                                                                      
                                                                           
Servicing of finance                                                            
                                                                           
Bank charges                                     (31)         (63)           
(124) 
                                                                           
Taxation                                         (81)          67            
(882) 
                                                                           
Capital expenditure and                                                        
financial investment                                                            
                                                                           
Purchases of investments                     (61,787)     (42,725)        
(93,093) 
                                                                           
Sales of investments                          64,524       48,149         
102,936  
                                                                           
Exchange gains/(losses) on                        26          (80)           
(225)
settlement                                                                      
                                                                           
Net cash inflow from capital                   2,763        5,344           
9,618 
expenditure and financial                                                      
investment                                                                      
                                                                           
Equity dividends paid            5            (6,731)      (6,784)         
(6,784) 
                                                                           
Net cash(outflow)/inflow                      (2,489)      (1,111)          
9,219 
before financing                                                                
                                                                           
Financing                                                                       
                                                                           
Own shares purchased and                           -       (1,676)         
(1,677)
cancelled                                                                        
                                                                             
Net cash outflow from                              -       (1,676)         
(1,677)
financing                                                                       
                                                                           
(Decrease)/increase in cash      8            (2,489)      (2,787)          
7,542  
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (UNAUDITED) 
for the six months to 31 March 2013 
                              Six months to     Six months to           
Year to  
                                   31 March          31 March      30 
September 
                                       2013              2012              
2012  
                                      £'000             £'000             
£'000  
                                                                           
Opening equity shareholders'            256,724           237,350           
237,350 
funds                                                                           
                                                                           
Net return after taxation for            37,691            27,768            
27,835 
the period                                                                      
                                                                           
Dividends paid                           (6,731)           (6,784)           
(6,784) 
                                                                           
Shares purchased and cancelled                -            (1,676)           
(1,677) 
                                                                           
Closing equity shareholders'            287,684           256,658           
256,724 
funds                                                                           
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
for the six months to 31 March 2013 
1. Accounting policies 
These Financial Statements have been prepared on the basis of the accounting
policies set out in the Company's Annual Report and Financial Statements for
the year ended 30 September 2012. These accounting policies are expected to be
followed throughout the year ending 30 September 2013. 
2. Income 
                              Six months to   Six months to           Year 
to 
                                   31 March        31 March      30 
September  
                                       2013            2012              
2012               
                                      £'000           £'000             
£'000 
                                                                           
Income from investments                                                         
                                                                           
Overseas dividends                        2,450           1,479             
9,045 
                                                                           
Total income                              2,450           1,479             
9,045 
3. Taxation 
The taxation charge for the six months to 31 March 2013 is £158,000 (six 
months
to 31 March 2012: £157,000; year to 30 September 2012: £814,000). 
The taxation charge comprises a corporation tax charge for the six months to 31
March 2013 of £nil (six months to 31 March 2012: £nil; year to 30 September
2012: £nil) and irrecoverable withholding tax suffered of £158,000 (six 
months
to 31 March 2012: £157,000; year to 30 September 2012: £814,000). 
4. Share capital 


                                   Allotted, called up and fully
                                               paid             


                                                            
Equity share capital               Number of shares        £'000 
                                                            
Ordinary shares of 25p each                                      
                                                            
Balance at 30 September 2012             42,069,371       10,517 
                                                            
Shares cancelled                                  -            - 
                                                            
Balance at 31 March 2013                 42,069,371       10,517 
                                                             
During the six months to 31 March 2013 no ordinary shares were purchased and
cancelled (six months to 31 March 2012 and year to 30 September 2012: 331,377
ordinary shares were purchased and cancelled). 
5. Dividends 
                                       Six months   Six months           
Year 
                                               to           to             
to 
                                         31 March     31 March   30 
September 
                          Payment            2013         2012           
2012 
                          date              £'000        £'000          
£'000 
                                                                           
Final dividend for the year     31 January                                       
ended 30 September 2012         2013                                             
                   
of 12.0p                                        5,048            -              
- 
                                                                           
Special dividend for the year   31 January                                       
ended 30 September 2012         2013                                             
                  
of 4.0p                                         1,683            -              
- 
                                                                           
Final dividend for the year     31 January                                       
ended 30 September 2011         2012                                             
                    
of 12.0p                                            -        5,088          
5,088 
                                                                           
Special dividend for the year   31 January                                       
ended 30 September 2011         2012                                             
                       
of 4.0p                                             -        1,696          
1,696 
                                                                            
                                            6,731        6,784          
6,784 
6. Net asset value per ordinary share 
                                  31 March       31 March          30 
September   
                                      2013           2012                  
2012   
                                                                         
Net assets attributable at the    £287,684,000   £256,658,000          
£256,724,000  
period end                                                         
                                                                         
Number of ordinary shares in        42,069,371     42,069,371            
42,069,371  
issue at the period end                                                       
                                                                         
Net asset value per ordinary            683.83p        610.08p               
610.24p
share                                                                         
                                                                          
7. Reconciliation of net return before finance costs and taxation to net cash
inflow from operating activities 
                             Six months to     Six months to         Year 
to  
                                  31 March          31 March    30 
September  
                                      2013              2012            
2012  
                                     £'000             £'000           
£'000  
                                                                       
Net return before finance costs         37,912            27,988          
28,773 
and taxation                                                                
                                                                       
Adjustment for returns from                                                
non-operating activities:                                                   
                                                                       
- Gains on investments                 (36,206)          (27,459)        
(21,758) 
                                                                       
- Foreign exchange (gains)/                (60)              125             
410 
losses of a capital nature                                                   
                                                                       
Return from operating                    1,646               654           
7,425 
activities                                                                  
                                                                       
Adjustment for non-cash flow                                               
items:                                                                      
                                                                       
- Increase in debtors and                   (6)             (308)             
(1)
accrued income                                                              
                                                                       
- Decrease in creditors                    (49)              (21)            
(33) 
                                                                       
Net cash inflow from operating           1,591               325           
7,391 
activities                                                                  
                                                                        
8. Reconciliation of net cash flow to net cash 
                             Six months to     Six months to           Year 
to  
                                  31 March          31 March      30 
September  
                                      2013              2012              
2012  
                                     £'000             £'000             
£'000  
                                                                       
(Decrease)/increase in cash in          (2,489)           (2,787)            
7,542 
the period                                                                  
                                                                       
Movement in net cash resulting          (2,489)           (2,787)            
7,542 
from cash flows                                                             
                                                                       
Foreign exchange movement                   34               (45)             
(185) 
                                                                       
Movement in net cash                    (2,455)           (2,832)            
7,357  
                                                                       
Net cash brought forward                12,651             5,294             
5,294  
                                                                       
Net cash carried forward                10,196             2,462            
12,651  
9. Exchange rates 
Detailed below are the exchange rates against sterling used in the preparation
of the Financial Statements. 


                                       31 March      31 March   30 September
                                           2013          2012           2012


                                                                       
Euro                                     1.1825        1.1998         1.2552 
                                                                       
Swiss franc                              1.4379        1.4442         1.5176 
                                                                       
Swedish krona                            9.8730       10.6016        10.5876 
                                                                       
US dollar                                1.5185        1.5978         1.6148 
                                                                       
Danish krone                             8.8154        8.9259         9.3571 
                                                                       
Norwegian krone                          8.8563        9.1137         9.2444 
                                                                       
NZ dollar                                1.8120        1.9498         1.9439 
10. Financial information 
The financial information for the six months to 31 March 2013 and for the six
months to 31 March 2012 has not been audited or reviewed by the Company's
Auditors pursuant to the Auditing Practices Board guidance on such reviews. The
financial information contained in this report does not constitute statutory
accounts within the meaning of Section 434 of the Companies Act 2006. 
The latest published audited Financial Statements which have been delivered to
the Registrar of Companies are for the year ended 30 September 2012; the report
of the independent auditors thereon was unqualified and did not contain a
statement under Section 498 of the Companies Act 2006. The information for the
year ended 30 September 2012 is an extract from those financial statements. 
11. Status of the Company 
It is the intention of the Directors to conduct the affairs of the Company so
that it continues to satisfy the conditions for approval as an investment trust
company as set out in Sections 1158 and 1159 of the Corporation Tax Act 2010. 
12. Going concern 
The Company's business activities, together with factors likely to affect its
future development, performance and financial performance, are set out in the
Investment Manager's Review and Directors' Statements contained in the
Half-Yearly Financial Report. The Company's principal risks are investment and
strategy risk, discount volatility risk, market risk (comprising interest rate
risk, currency risk and other price risk), liquidity risk, credit risk, gearing
risk, regulatory risk, operational risk and financial risk. The Company's
assets consist principally of a diversified portfolio of listed European equity
shares, which in most circumstances are realisable within a short period of
time and exceed its liabilities by a significant amount. The Directors have
concluded that the Company has adequate resources to continue in operational
existence for the foreseeable future. For this reason, they have adopted the
going concern basis in preparing the Financial Statements. 
13. Related party transactions 
There were no related party transactions during the period. Under the AIC
Statement of Recommended Practice issued in January 2009, the Investment
Manager is not considered to be a related party of the Company. 
SHAREHOLDER INFORMATION 
Investing in the Company 
The Company's ordinary shares are traded on the London Stock Exchange and the
New Zealand Stock Exchange and can be bought or sold through a stockbroker or
financial adviser. The ordinary shares are eligible for inclusion in ISAs,
Junior ISAs and SIPPs. These are available through Alliance Trust Savings, who
also offer the opportunity to invest in the Company through a Dealing Account.
Further information is available on the Company's website: 
www.theeuropeaninvestmenttrust.com or by telephone on 01382 573737. 
Frequency of net asset value publication 
The Company's net asset value per ordinary share is released daily to the
London Stock Exchange and the New Zealand Stock Exchange and published on the
Company's website: www.theeuropeaninvestmenttrust.com and on the Edinburgh
Partners' website: www.edinburghpartners.com. 
Share price and sources of other information 
The Company's ordinary share price is quoted daily in the Financial Times, the
Daily Telegraph and The Times under "Investment Companies". Investors in New
Zealand can obtain share prices from leading newspapers in that country.
Previous day closing price, daily net asset value and other portfolio
information is published on the Company's website: 
www.theeuropeaninvestmenttrust.com and on the Edinburgh Partners' website: 
www.edinburghpartners.com. Other useful information on investment trusts, such
as prices, net asset values and company announcements, can be found on the
websites of the London Stock Exchange: www.londonstockexchange.com and the
Association of Investment Companies: www.theaic.co.uk. 
Share register enquiries 
The register for the ordinary shares is maintained by Computershare Investor
Services PLC. In the event of queries regarding your holding, please contact
the Registrar on 0870 889 4086 or email web.queries@computershare.co.uk or
website: www.investorcentre.co.uk. New Zealand shareholders should contact the
Registrar on +64 9 488 8777 or email enquiry@computershare.co.nz or website: 
www.investorcentre.com/nz. Changes of name and/or address must be notified in
writing to the Registrar, at the relevant address detailed below. 
Key dates                                                
                                                    
Company's year end           30 September               
Annual results announced     November                   
Annual General Meeting       January                    
Annual dividend paid         January                    
Company's half-year end      31 March                   
Half-yearly results          May                        
announced                                                
Interim Management Statements 
In accordance with the Disclosure and Transparency Rules of the UK Listing
Authority, the Company will be releasing Interim Management Statements for the
quarters ending 31 December and 30 June. These will be released to the London
Stock Exchange and the New Zealand Stock Exchange and may be viewed on the
Company's website: www.theeuropeaninvestmenttrust.com and on the Edinburgh
Partners' website: www.edinburghpartners.com. 
Association of Investment Companies 
The European Investment Trust plc is a member of the AIC, which publishes
monthly statistical information in respect of member companies. For further
details, please contact the AIC on 020 7282 5555, enquiries@theaic.co.uk or
visit the website: www.theaic.co.uk. 
RISK FACTORS 
This document is not a recommendation, offer or invitation to buy, sell or hold
shares of the Company. If you wish to deal in shares of the Company, you may
wish to contact an authorised professional investment adviser. 
An investment in the Company should be regarded as long term and is only
suitable for investors who are capable of evaluating the risks and merits of
such investment and who have sufficient resources to bear any loss which might
result from such investment. 
The market value of, and the income derived from, the ordinary shares can
fluctuate. The Company's share price may go down as well as up. Past
performance is not a guide to future performance. There is no guarantee that
the market price of the ordinary shares will fully reflect their underlying net
asset value. Fluctuations in exchange rates will affect the value of overseas
investments (and any income received) held by the Company. Investors may not
get back the full value of their investment. There can be no guarantee that the
investment objective of the Company will be met. The levels of, and reliefs
from, taxation may change. 
This Half-Yearly Financial Report contains "forward looking statements" with
respect to the Company's plans and its current goals and expectations relating
to its future financial condition, performance and results. By their nature,
all forward looking statements involve risk and uncertainty because they relate
to future events that are beyond the Company's control. As a result, the
Company's actual future financial condition, performance and results may differ
materially from the plans, goals and expectations set forth in the Company's
forward looking statements. The Company undertakes no obligation to update the
forward looking statements contained within this Half-Yearly Financial Report
or any other forward looking statements it makes. 
The Company is a public company. It is registered in England and its shares are
listed on the London Stock Exchange and the New Zealand Stock Exchange. The
Company is not regulated or authorised by the Financial Conduct Authority. 
Employees of Edinburgh Partners Limited may (subject to applicable laws and
regulations) hold shares in the Company and may buy, sell or offer to deal in
the Company's shares from time to time. 
DIRECTORS, INVESTMENT MANAGER AND ADVISERS 
Directors (all non-executive)      Douglas C P McDougall OBE (Chairman)         


                                   William D Eason                             
                                   Ralph Kanza                                 
                                   Michael B Moule                             


                                                                           
Secretary and Registered Office    Kenneth J Greig                              


                                   Beaufort House                              
                                   51 New North Road                           
                                   Exeter EX4 4EP                              


                                                                           
Investment Manager                 Edinburgh Partners Limited                   


                                   27-31 Melville Street                       
                                   Edinburgh EH3 7JF                           


                                                                           
Auditors                           PricewaterhouseCoopers LLP                   


                                   Erskine House                               
                                   68-73 Queen Street                          
                                   Edinburgh EH2 4NH                           


                                                                           
Registrar - UK                     Computershare Investor Services PLC          


                                   The Pavilions                               
                                   Bridgwater Road                             
                                   Bristol BS99 6ZZ                            


                                                                           
Registrar - New Zealand            Computershare Investor Services Limited      


                                   Private Bag 92119, Victoria Street West     
                                   Auckland 1142, New Zealand                  
                                   Level 2,159 Hurstmere Road, Takapuna        
                                   Auckland 0622, New Zealand                  


                                                                           
Solicitors                         Dickson Minto W.S.                           


                                   16 Charlotte Square                         
                                   Edinburgh EH2 4DF                           


                                                                           
Bankers and Custodian              JPMorgan Chase Bank, NA                      
                               Chaseside                                    
                               Bournemouth BH7 7DA                          
Registered in England and Wales No. 1055384 
An investment company as defined under Section 833 of the Companies Act 2006 
The Company is a member of the Association of Investment Companies 
Enquiries 
Dale Robertson      0131 270 3800  
                         
Kenneth J Greig     0131 270 3800  
Edinburgh Partners Limited                    
                                         
27-31 Melville Street                        
Edinburgh                                    
EH3 7JF                                       
28 May 2013 
ENDS 
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of this announcement. 
END 
-0- May/29/2013 06:00 GMT