Fidelity European Trust PLC (LON:FEV) monthly factsheet for June 2026.
Portfolio Manager Commentary
European equities extended their gains in June, supported by improving investor sentiment as geopolitical tensions in the Middle East eased.
Against this backdrop, the Trust outperformed its benchmark during the month. The lack of exposure to telecommunications and stock selection in the industrials and consumer discretionary sectors drove returns. Gearing had a broadly neutral impact on performance.
Among individual holdings, ASML and MTU Aero Engines were notable contributors. ASML benefited from improving sentiment towards the semiconductor equipment cycle, supported by higher industry capital expenditure forecasts and growing confidence that the current investment cycle will remain stronger for longer. Shares in MTU Aero Engines rose on positive analyst commentary and easing Middle East tensions, which supported sentiment towards aerospace stocks. Conversely, NXP Semiconductors detracted amid weak automotive and industrial demand, while Partners Group declined on concerns over slower private wealth fundraising, redemption pressure in evergreen vehicles, and the sustainability of future performance-fee earnings.
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 12.8% and 9.3%, respectively, compared to the FTSE World Europe ex UK Total Return Index, which returned 23.5%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
