European investment trusts November equities rally as inflation falls to 2.4% (LON:FEV)

fidelity-logo

Fidelity European Trust PLC (LON:FEV) monthly factsheet for the period ended 30 October 2023.

Portfolio Manager Commentary

After falling for three consecutive months, Continental European equities rallied in November as cooling inflation boosted hopes that central banks will adopt a more dovish tone. Eurozone inflation eased to 2.4% in November, from October’s reading of 2.9%. Lower energy prices were the major contributor to the fall; and both goods and services inflation also eased, putting the 2% target in sight as investors speculate that the European Central Bank (ECB) will cut interest rates sooner than previously suggested. ECB President Christine Lagarde signalled that the bank will continue to focus on bringing inflation back to its long-term target of 2% and will not act upon short-term developments.

During the month, the Trust outperformed the index, driven by strong stock picking in financials and the large overweight in technology. The Trust’s use of gearing supported relative returns in a strongly rising market. Gains were somewhat limited by weaker stock picking in industrials and consumer discretionary. At a stock level, financials holdings Partners Group, 3i Group and EQT, were the top contributors to relative gains. Conversely, the short position in an industrial business detracted from performance.

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 10.7% and 9.0% respectively, compared to 10.3% 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.

Share on:
Find more news, interviews, share price & company profile here for:

Fidelity European Trust Plc highlights value and dividend growth focus amid tariff turbulence

Explore the March 2025 performance of Fidelity European Trust PLC (LON:FEV) as geopolitical risks impact continental equities, affecting key sectors and investments.

Fidelity European Trust: 9.6% Share Price Return Amid Strong Continental Market Rally

Discover Fidelity European Trust PLC's February 2025 insights, highlighting portfolio performance, market trends, and investment strategies in European equities.

The Case for European Equities: Opportunities and Resilience – Fidelity

European equities may not always grab the headlines, but according to Sam Morse and Marcel Stötzel, portfolio managers at Fidelity European Trust PLC (LON:FEV), the region presents a compelling investment case.

Fidelity European Trust Factsheet: Gearing powers Trust higher in rising market  

Explore the January 2025 performance of Fidelity European Trust PLC (LON:FEV) as it navigates European equities, market trends, and investment strategies.

UK Listed Investment Funds Investing Ideas

Discover diverse investment opportunities with UK-listed funds. From high-yielding REITs to international growth, explore insights for informed decisions.

Fidelity European Trust: ‘consistent record of outperformance’ Kepler Jan 2025

Fidelity European Trust PLC (LON:FEV) excels in European equities with a 54% 5-year return, offering robust dividends and a key role in diversified portfolios.

Search

Search