Join our community of smart investors

Life after Wirecard: should you buy Darwall's investment trust?

Does Alexander Darwall's approach still warrant confidence?
February 11, 2021
  • European Opportunities Trust has taken a serious reputational hit following the Wirecard collapse, but otherwise its winning formula has not changed
  • The trust's strong record and process still warrants confidence, but consider whether it is suitable for you personally

When recently asked whether fraud was still rife in the modern corporate world, Terry Smith’s answer was telling. “I think Wirecard answers that in a single word,” he said.

Not every star fund manager has the luxury of such observations. For Alexander Darwall, the nefarious practices that led to Wirecard’s collapse have looked career threatening. Having at one point backed the stock to the tune of a 17 per cent allocation, Darwall still had a double-digit position in Wirecard via European Opportunities Trust (JEO) when auditor EY said it could not confirm the existence of €1.9bn (£1.67bn) in cash at the firm on 18 June 2020. This has dented the once top-performing trust's returns, as well as its reputation.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in