Fidelity European Trust PLC (LON:FEV) monthly factsheet for the period ended 30 October 2023.
Portfolio Manager Commentary
On a rolling 12-month basis, the Trust recorded NAV and share price returns of 12.3% and 12.7% respectively, compared to 12.0% for the index.
Continental European equities fell for the third consecutive month. Market sentiment remained fragile amid a disappointing earnings season, and elevated interest rates coupled with geopolitical tension weighed on sentiment. Eurozone GDP contracted by 0.1 percent in Q3, following a modest 0.2 percent increase in Q2. Central banks including the ECB stopped raising rates, and investors now believe the hiking cycle as over, with only a small probability of further action from the Fed.
During the month, the Trust outperformed the index, driven by helpful stock picking aross most sectors. At a stock level, Novo Nordisk surprised the market with raise in guidance for full year sales and operating profit, while Dassault Systemes reported solid Q3 results and upgraded profit outlook for 2023. However, gains were limited by the holding in Sanofi, as shares fell after the company lowered profit expectations. Lonza was also weak, the shares declined after the company issued new medium-term targets and announced a cut to sales and margin guidance.
Fidelity European Trust PLC (LON:FEV) is a European investment trust. It aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
