7th Feb 2025 10:15
(Alliance News) - European Opportunities Trust PLC on Friday said its net asset value declined, with notable detractors including Novo Nordisk AS and Dassault Systemes SE.
European Opportunities Trust invests in European companies offering capital growth and is managed by Devon Equity Management Ltd.
The company said net asset value per share fell 8.6% to 921.66 pence each as at November 30, from 1,008.48p at May 31.
Net asset value total return with dividends reinvested was minus 8.4% over the six months to November 30, underperforming against the benchmark, the MSCI Europe total return index in sterling, which had a return of minus 3.3%.
Pertinently, European Opportunities highlighted Novo Nordisk, which is behind weight loss drugs Ozempic and Wegovy, biotechnology and genetics company Genus PLC, and software firm Dassault Systemes as detractors.
"The nomination of Robert F Kennedy Jr to be the next US health secretary has alarmed investors. The nominee is deemed to have eccentric views which could disturb current practices in healthcare and, in the case of Genus, animal husbandry," European Opportunities said.
It added: "The share price of Edenred [SA], which offers specific-purpose payment solutions, fell sharply. Notwithstanding the record of excellent results, investors worried that politicians in France and Italy will seek to restrict returns through new regulations. We recognise these regulatory threats. However, we believe that Edenred can operate successfully even as regulations change."
Despite this, looking ahead, Alexander Darwall, chief investment officer at Devon Equity, said: "We believe that our portfolio is better value than at any time since 2017. Our earnings forecasts for the portfolio companies are markedly higher than those projected for the wider market."
He added: "Despite the direction of fund flows and Europe's intractable problems, within this portfolio we do see numerous potential catalysts from our companies this year which would drive share prices. Although December 2024 saw disappointing phase three trial results for Novo Nordisk's next generation drug Cagrisema, the company has a bright future as a global leader in treating diabetes and obesity. Our healthcare, technology and payments companies should all make good progress. We remain confident that our strategy of picking companies that compete and succeed on the world stage will be vindicated."
European Opportunities shares were 0.8% higher at 875.00p each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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