Fidelity European Trust PLC (LON:FEV) monthly factsheet for November 2025.
Portfolio Manager Commentary
Continental European equities ended the month higher, outperforming other major developed markets. Sentiment was supported by a steady macroeconomic backdrop and clearer policy signals.
The Trust underperformed the index during the month. Stock selection in the financials and industrials sectors weighed on returns, as did the use of gearing. At the stock level, private equity firm 3i (owner of discount retailer Action) declined after Action reported a sharp slowdown in like-for-like sales in France, while shares in Legrand weakened following a strong prior run as Q3 results fell short of expectations. The top contributor was the position in Roche. Shares advanced after the company announced positive results in two of its major drug trials, one for the treatment of multiple sclerosis and another for breast cancer, transforming the long-term growth profile of the company. ABN AMRO Bank added value after the company presented a roadmap for profitable growth and new financial targets for 2028 at its Capital Markets Day, including plans to reduce workforce by 2028, signalling cost savings and a sharper strategic focus on its core businesses.
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 13.1% and 23.3% respectively, compared to FTSE World Europe ex UK Total Return Index that returned 23.8%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
