Fidelity European Trust PLC (LON:FEV) monthly factsheet for September 2026.
Portfolio Manager Commentary
Continental European equities fell in September, ending five consecutive months of gains, as renewed geopolitical tensions and rising government bond yields weighed on investor sentiment.
The Trust modestly outperformed the index over the month, supported by stock selection in industrials, consumer discretionary and financials, while its overweight allocation to technology also added value. However, gearing detracted from absolute performance as markets declined. At the stock level, ASML was the largest contributor, benefiting from improving sentiment towards AI-related semiconductor investment. MTU Aero Engines also advanced, supported by resilient commercial aerospace demand and continued growth in its maintenance business. Conversely, Partners Group and Novonesis were the largest detractors. Partners Group weakened following lower-than-expected performance fee income, reduced guidance and a leadership change, while Novonesis came under pressure amid concerns over whether its recent rate of growth could be sustained.
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 8.9% and 7.4%, respectively, compared with 14.5% 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.
