The latest factsheet for European Opportunities Trust PLC has been published, providing details of portfolio holdings and past performance statistics as of the end of July. In July, the MSCI Europe index increased by 1.7% in sterling, while the company's NAV rose by 1.9%. The gearing was 4.6% at the end of the month, and the discount to NAV was 11.0%.
The European economy is expected to grow by 0.9% this year, although there are downside risks. The European Purchasing Managers Index (PMI) indicators suggest further weakness ahead, with declines in new orders and business expectations. China's economic recovery is also softening, with weaker data on exports and lower transpacific freight indicating a weakening US activity. The ECB is expected to raise rates again in September.
Recent market performance has been aided by positive fund flows as global managers increased their European weightings. However, there have been more downward than upward revisions in the current reporting period. Real estate, banks, and utilities have been slightly positive, while materials and technology sectors have been slightly disappointing.
In terms of the portfolio, the company is pleased with the recent reports of its holdings. SOITEC, Genus, GTT, Grifols, Darktrace, and Deutsche Boerse all reported positive results and contributed to the share price rally. Bayer provided disappointment with a profits warning, but the company's leadership in agricultural technology remains unchanged. Dassault Systèmes and Oxford Instruments had weak performances, while Edenred's shares weakened despite strong revenue and profit growth. Novo Nordisk slightly detracted from returns due to supply shortages and safety concerns.
Overall, the company remains confident in its portfolio and the prospects of its holdings.