Fidelity European Trust PLC (LON:FEV) monthly factsheet for November 2024.
Portfolio Manager Commentary
Continental European equities delivered negative returns in November. Early optimism around Donald Trump’s win in the US presidential election subsided, as investors shifted their focus towards the impact of potential US trade tariffs on the eurozone’s growth. Sentiment was also impacted by political instability in France and Germany.
During the month, the Trust performed in line with the index. Security selection in financials and technology sectors contributed, while gearing added some value, although stock selection in industrials and energy detracted. The Trust’s holding in 3i group was the top contributor, with the group delivering particularly strong gains following the announcement of strong financial results for the first half of fiscal year 2025. In technology, the Trust’s holding in SAP continued to rise after the company reported third quarter earnings and revenue in October that slightly beat estimates and raised its outlook for cloud computing and software revenue. These gains were partially offset by the Trust’s exposure to Legrand. Shares declined following the underwhelming third quarter 2024 results, as sales fell short of consensus expectations, primarily due to softness in the European market.
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 6.9% and 4.6% respectively, compared to 8.2% for the index.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
