European Opportunities Trust PLC has released a new fact sheet detailing its portfolio holdings and past performance statistics as of April 30, 2024. The MSCI Europe index was down 0.9% in sterling in April, while the company's NAV fell by 1.1%, with a discount to NAV of 10.8% at month end. The US Federal Reserve's decision to keep policy rates unchanged is expected to have implications for European interest rates.
The company noted that reported earnings for the first quarter of 2024 were generally good, leading to a slight upward revision of expectations for 2024 and 2025. Analysts upgraded earnings per share (EPS) forecasts for the MSCI Europe index to around 6% for 2024. Sectors such as banks, defense companies, and energy stocks have shown positive performance, while Europe's car makers are facing challenges due to a slowdown in demand for Electric Vehicles (EV).
The portfolio experienced significant news in April, including a bid for Darktrace from private equity, which, although providing a short-term boost, was deemed too low by the company. Positive contributors to performance included Novo Nordisk, Prysmian, Oxford Instruments, Infineon, and Grifols. On the downside, Dassault Systèmes, Edenred, Experian, and Deutsche Boerse faced challenges affecting their share prices.
The company remains optimistic about the potential growth of Novo Nordisk, the electrification of industry driving demand for cables, and the positive contribution from Infineon. Additionally, the European Commission's latest proposal for tackling late payments in the EU is seen as potentially beneficial for BFF Bank. The capital markets day held by BioMérieux was also viewed positively, pointing to strong growth rates.
Overall, the company continues to monitor and assess the performance of its portfolio holdings, taking into account both positive and negative contributors to performance in April 2024.