European Opportunities Trust PLC has published a new fact sheet detailing portfolio holdings and past performance statistics as of the end of February. Despite the MSCI Europe index's 2.3% increase in sterling, the company's NAV declined by 1.2%. The 2023 reporting season in Europe was not strong, with the US and other major economies outpacing Europe in growth. However, easing interest rates in the US and Europe are benefiting equities as inflation moderates.

The stock market saw analysts reducing estimates for earnings growth in 2024. Defense stocks are performing well due to European governments discussing increasing defense budgets and demand from the US Department of Defense. Energy stocks have weakened as energy prices declined, while the drinks and luxury sector, except for LVMH, is struggling. Anecdotal evidence suggests that 2024 will be a challenging year for this sector.

The company's under-performance in February is attributed to the poor performance of Genus and Grifols. Genus experienced disappointing results due to a slump in demand for their porcine genetics in China and a delay in the regulatory approval of their gene-edited pig technology. Grifols' 2023 accounts have not been signed off by their auditor, and their 2024 guidance fell short of expectations. However, the company is on track with the agreed sale of its stake in the Chinese company, Shanghai RAAS, for approximately $1.8 billion.

Dassault Systèmes' weak outlook for Medidata and an investigation into the conduct of senior Edenred employees in Italy also impacted performance. However, Novo Nordisk and RELX shares performed well, with Novo Nordisk's acquisition of Catalent and RELX's structural growth through Generative AI driving their success. ICG also produced good results, with strong fund raising for their investment strategies.

In conclusion, the fact sheet provides a comprehensive overview of the company's performance, including both positive and negative contributors, offering insights into the European market and the company's strategic investments.