Fidelity European Trust PLC (LON:FEV) monthly factsheet for August 2026.
Portfolio Manager Commentary
Continental European equities edged higher in August, supported by a generally healthy second-quarter earnings season and indications that earnings growth was becoming more broadly based across sectors.
Against this backdrop, the Trust outperformed the index, with financials and industrials making the largest sector contributions, supported by both stock selection and positioning. Stock selection in healthcare also added value, while the Trust’s geared exposure provided additional support as markets rose. At the stock level, Novonesis advanced following stronger-than-expected results, an upgraded growth and margin outlook, and a new €1 billion share buyback programme. Deutsche Börse extended its late-July rally following a solid second-quarter update that reinforced confidence in earnings delivery. Conversely, BNP Paribas declined amid French fiscal and political concerns, while NXP Semiconductors remained under pressure as investors continued to favour companies with greater exposure to AI-related demand, while improvement in cash conversion was slower than expected.
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 13.7% and 11.4%, respectively, compared with the FTSE World Europe ex UK Total Return Index, which returned 20.9%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
