Fidelity European Trust PLC (LON:FEV) monthly factsheet for May 2025.
Portfolio Manager Commentary
European equities ended the month higher, navigating a period of heightened volatility as investors weighed in uncertainty surrounding US trade policies.
The Trust underperformed the index during the month, primarily due to weak positioning in the consumer staples and consumer discretionary sectors, while gearing had a small positive impact. Shares in 3i Group declined following the release of full-year results to 31 March 2025. Despite a 22% increase, the net asset value (NAV) growth fell short of market expectations. Action, 3i’s largest portfolio company, continued to perform well. Shares in L’Oréal were weak in the absence of any positive catalysts during the month. In contrast, ABN AMRO Bank was a key contributor to performance. The company’s shares advanced following the first quarter of the year 2025 results that were broadly in line with expectations. The holding in Legrand was a top contributor – the stock gained after the company delivered strong first quarter 2025 results, with organic sales surpassing consensus expectations.
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 2.8% (net of fees) and 3.5% respectively, compared to the FTSE World Europe ex UK Total Return Index that returned 7.4%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
