- 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.