Fidelity European Trust PLC (LON:FEV) monthly factsheet for June 2025.
Portfolio Manager Commentary
Continental European equities ended the month slightly lower (in euro terms) following a strong year-to-date performance. Investor sentiment was impacted by geopolitical uncertainty, particularly towards the end of the month, amid the Israel-Iran conflict, while trade tensions continued to weigh on risk appetite ahead of the 9 July deadline for US trade negotiations.
The Trust underperformed the index during the month, mainly due to weak stock selection in industrials, technology, and healthcare, though overall sector positioning had a small positive impact. Flavours & fragrances business Symrise was the largest detractor over the period, with shares falling on concerns of a Q2 slowdown driven by macroeconomic headwinds. Shares in Nestlé were weak following the announcement of Chairman Paul Bulke’s planned departure in April 2026 amidst ongoing pressures from subdued consumer demand and rising input costs. In contrast, Legrand shares continued to deliver strong performance underpinned by its strong Q1 2025 results announced in May. The holding in EQT also performed well supported by multiple broker upgrades.
Our focus is on finding attractively valued companies with good prospects for cash generation and dividend growth over the longer term. On a rolling 12-month basis, the Trust recorded NAV and share price returns of 2.3% and 5.5% respectively, compared to FTSE World Europe ex UK Total Return Index that returned 9.9%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
