European Opportunities Trust PLC has released a new fact sheet detailing its portfolio holdings and past performance statistics as of January 31, 2024. The MSCI Europe index remained unchanged in sterling in January, while the company's NAV rose by 0.6%. The US economy is outperforming Europe, with the US Federal Reserve indicating that inflation is proving to be persistent. In contrast, Europe's growth prospects for 2024 are not overly optimistic, with Germany's ifo Business Climate Index falling to its lowest level since the beginning of COVID.
Eurozone inflation is running at 2.8% in January, with slight upward pressures on inflation, such as doubled shipping costs and the phasing out of the German EV subsidy scheme. The European Commission has proposed a 90% cut in EU emissions by 2040, contrasting with the increasing use of coal in India and China. Analysts are reducing estimates for earnings growth in 2024, and various sectors, such as drinks, luxury, and oil and gas, are facing challenges.
Novo Nordisk was a significant contributor to performance, with a surge in sales and the announcement of its intention to acquire a fill and finish company. Dassault Systemes and RELX also showed strong performance, while Genus experienced a bounce in share price after a period of underperformance. ICG reported an excellent trading statement for the nine months to December 31, 2023, with strong fund raising.
Grifols was the biggest detractor in January due to a short seller report, but the company's management response and strategic changes, including the departure of two family members from executive positions, are viewed positively. Soitec and Infineon faced challenges due to weaker expected demand for mobile phones and reduced guidance, respectively.
The fact sheet provides a comprehensive overview of the company's investments and performance, offering insights into the economic landscape and the performance of specific holdings. It highlights the company's approach to navigating market challenges and capitalizing on opportunities, providing valuable information for investors.