European Opportunities Trust PLC has published a new fact sheet detailing its portfolio holdings and past performance statistics as of December 31, 2023. The total return on the company's NAV in December was 5.4%, outperforming the total return on the Company's benchmark, the MSCI Europe index in Sterling, which was 4.2%. The Company had no borrowings at the end of December, and the discount to NAV was 8.7% at the month end.
Investor sentiment remained positive as analysts expect a series of interest rate cuts in the US, leading to optimism around falling interest rates and explaining the good stock market performance in December. However, growth rates in Europe appear to be weakening, with economists now expecting around 0.8% growth in 2024. Interest rates are expected to decline, but not to the same extent as in the US.
Experian and Grifols were the biggest contributors to performance in December. Experian's good third-quarter results and confidence in falling interest rates in the US boosted its performance, while Grifols saw an improvement in its share price due to a clinical trial failure at a competitor and the sale of a stake in a Chinese company, signaling progress in the company's deleveraging policy.
Despite regulatory threats in France, Edenred's shares improved, and Deutsche Boerse's shares performed well, benefiting from volatile financial markets. Genus saw a slightly improved share price, and despite facing weaker demand, the company remains confident in its leading positions and the prospect of FDA approval for its gene editing technology.
On the other hand, Merck KGaA, Bayer, Neste, and Soitec experienced declines in their share prices due to various factors such as failed clinical trials, regulatory threats, and maintenance announcements affecting profits.
Overall, the fact sheet provides a comprehensive overview of the company's performance and the factors influencing the European market, offering valuable insights for investors.