Fidelity European Trust PLC (LON:FEV) monthly factsheet for September 2025.
Portfolio Manager Commentary
European equities ended the quarter higher but underperformed global markets amid ongoing trade tensions and political uncertainty.
The Trust underperformed the index during the month. Stock picking within financials and industrials weighed on returns, as did the use of gearing. Shares in Swiss packaging company SIG declined following a profit warning and the announcement of a dividend pause for 2025. Financial intermediary business Deutsche Börse weakened amid a more demanding comparison base in the coming quarters after exceptionally strong trading volumes in 2024 and early 2025. Net interest income has also come under pressure, driven by lower US interest rates, a softening Euribor, and a weaker US dollar. Conversely, shares in ASML gained support following a sentiment shift and bullish analyst upgrades. The company also announced a strategic partnership with France-based Mistral AI. The holding in Irish banking group AIB advanced, tracking the broader strength within the European banking sector.
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 5.1% and 7.8% respectively, compared to FTSE World Europe ex UK Total Return Index that returned 15.5%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
