Fidelity European Trust PLC (LON:FEV) monthly factsheet for April 2026.
Portfolio Manager Commentary
Continental European equities recovered in April, supported by a broad-based global risk-on rebound following the sharp decline in March, though they underperformed most other major regions.
The Trust outperformed the index over the month, with positive stock selection in Industrials, Energy, and Utilities driving returns. However, gearing was a headwind. Three of the top five contributors came from the Industrials sector. Legrand advanced on the back of AI-driven demand and its exposure to data centres. Schneider Electric also performed strongly, supported by robust Q1 sales driven by structural growth themes such as data centres, electrification, and industrial automation. Intertek gained after reporting organic sales growth ahead of consensus expectations, and following a takeover bid launched by private equity firm EQT.
Conversely, MTU Aero Engines detracted amid concerns around the civil aerospace cycle and aftermarket demand, alongside potential disruption from the Middle East conflict. Ryanair also weakened due to rising fuel cost concerns and potential jet fuel supply risks in Europe stemming from the same ongoing conflict.
Our focus remains on identifying attractively valued companies with strong 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 8.1% and 6.0% respectively, compared to the FTSE World Europe ex UK Total Return Index, which returned 20.4%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
