European Opportunities Trust PLC has released its May 2024 fact sheet, revealing a 4.5% rise in net asset value (NAV) and a 10.2% discount to NAV at month-end. The company's portfolio is influenced by global economic trends, including potential interest rate cuts in the US and EU, as well as the impact of developments in America and Asia on European stock markets.
The company's portfolio reflects exposure to growing demand for electricity, particularly through holdings in Prysmian, Infineon, Soitec, and GTT. Additionally, the effects of China's production of low-cost, high-quality Electric Vehicles (EVs) are noted, with potential implications for the European automotive industry.
In terms of performance, Experian, Camurus, Infineon, and ICG made positive contributions, while Ryanair and Edenred faced challenges. The company also made strategic investment decisions, including increasing stakes in Prysmian, Ryanair, BFF, Thales, Bachem, Infineon, and CTS Eventim.
The outlook acknowledges the likelihood of moderate interest rate adjustments in Europe and persistent inflation. The company's confidence in its portfolio is reinforced by its companies' lower debt levels and reduced consumer exposure, particularly in light of Ryanair's warning about a slightly weaker consumer backdrop.
The company's net borrowings increased by 26.7 million to 55.4 million at month-end, representing 8.4% of total assets. The update concludes with a note of gratitude to investors for their continued support.
Alexander Darwall, Chief Investment Officer at Devon Equity Management Limited, signed the update, inviting interested parties to subscribe to the monthly updates.