Fidelity European Trust PLC (LON:FEV) monthly factsheet for January 2026.
Portfolio Manager Commentary
Continental European equities began the year positively as market leadership broadened beyond US mega-cap stocks, supporting flows into global equities. This translated into notable strength in Asian and emerging markets, with European equities close behind.
The Trust marginally underperformed the index during the month. Stock picking within industrials and financials, as well as the use of gearing, detracted from returns. Stock selection within consumer discretionary added value, partially offset by the overweight position in the sector. SAP declined following softer Q4 results and slightly weaker 2026 cloud revenue growth guidance. Richemont’s share price fell amid weaker luxury sector sentiment after LVMH’s mixed results, despite Richemont delivering better-than-expected Q3 figures. The Trust benefitted from not holding LVMH. ASML was the top contributor, with shares rising after Q4 2025 order intake materially exceeded expectations, driven mainly by memory customers and a strong full-year outlook. Epiroc also gained after beating Q4 expectations, supported by a rebound in orders amid an improving commodity backdrop.
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 9.3% and 14.1% respectively, compared to the FTSE World Europe ex UK Total Return Index that returned 21.3%
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
