Fidelity European Trust PLC (LON:FEV) monthly factsheet for March 2024.
Portfolio Manager Commentary
Continental European equities continued their upward trend in March as resilient economic data and a number of dovish cues from major central banks fueled risk-on sentiment among investors. The European Central Bank left its policy rates unchanged at the March meeting. Markets have shifted expectations for the first eurozone rate cut to come in June versus earlier predictions of a March-April cut, with markets pricing in cuts in July and August respectively for the US and UK.
During the month, the Trust outperformed the index. Stock picking in health care was particularly helpful, with holdings in consumer staples, materials and technology also adding value. The positive impact of gearing further contributed to returns. Private equity firm, 3i Group advanced on upbeat results from one of its largest holdings, Action. German flavours and fragrances ingredients business Symrise reported strong FY23 results and issued reassuring guidance for FY24. Conversely, financials stocks limited gains. Insurance business Sampo fell after lowering its target of Solvency II range citing lower market risk exposure. German exchange Deutsche Boerse and private equity company Partners Group were also among the weak performers.
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 16.7% and 19.1% respectively, compared to 13.8% for the index.
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.
