The European Investment Trust (EUT) is a focused portfolio of continental European companies chosen for their ability to outperform the market on a five-year view. Valuation is a key tenet of the investment process, with the manager working on the basis that the best-performing stocks will be those with a year five P/E ratio of 11x or less. Because of the strong valuation discipline, the portfolio may underperform peers in a bull market, although both NAV and share price total returns have been ahead of benchmark over most periods under the current management. While the main focus is on achieving capital growth, EUT also currently yields in excess of the peer group average.