Fidelity European Trust PLC (LON:FEV) monthly factsheet for February 2025.
Portfolio Manager Commentary
Continental European equities continued their upward trajectory in February and have delivered strong returns on a year-to-date basis, outperforming US equity markets. Strong corporate earnings and optimism over a potential resolution to the Ukraine war contributed to the positive sentiment.
The Trust underperformed the index during the month, primarily due to weak stock picking and overweight positioning in the industrials and financials sectors, while the impact of gearing was neutral. Following the positive reaction to results reported in January, the Trust’s holding in ASML came under pressure following reports that the US government is considering additional restrictions on semiconductor exports to China. The Trust’s exposure to private equity businesses Partners Group and EQT detracted as investors adjusted their expectations for US rate cuts following stronger-than-anticipated inflation data. Positively, Nestlé was the biggest contributor to the relative performance. Shares advanced after the company reported better than expected fiscal year 2024 results.
Our focus is on finding attractively valued companies with good prospects for cash generation and dividend growth over the longer term. During the 12-month period ended in February 2025, the Trust recorded NAV and share price returns of 7.3% and 9.6% respectively, compared to the FTSE World Europe (ex UK) Index that returned 10.5%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
