Fidelity European Trust PLC (LON:FEV) monthly factsheet for March 2026.
Portfolio Manager Commentary
Continental European equities declined sharply in March, erasing gains made earlier in the year. The conflict in the Middle East triggered a significant energy shock, heightening concerns over Europe’s energy security and the potential impact of elevated energy prices on inflation and economic growth.
The Trust underperformed the index during the month. Stock selection within industrials and healthcare, as well as the use of gearing detracted from returns. The largest stockspecific detractor was 3i Group, which reported slowing sales on the back of weakness in the French consumer. Intertek Group also fell after reporting weaker-than-expected organic sales growth, including a significant Q4 miss, raising concerns over growth momentum and reinforcing the under-investment narrative. Conversely, TotalEnergies was the top contributor, benefiting from higher oil and gas prices and supported by resilient Q4 results. Deutsche Boerse gained on heightened volatility and trading activity amid geopolitical tensions, boosting volumes and clearing revenues.
Our focus remains on finding 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 3.3% and 2.3% respectively, compared to FTSE World Europe ex UK Total Return Index that returned 16.5%.
