Fidelity European Trust PLC (LON:FEV) monthly factsheet for October 2025.
Portfolio Manager Commentary
Continental European equities rose in October, underpinned by a reasonably strong start to the latest earnings season, relative political stability, and policy support.
The Trust underperformed the index during the month. Stock selection in the financials and basic materials sectors weighed on returns, as did the use of gearing. Shares in industrial gas company Linde and software company Dassault Systèmes declined after both companies reported weaker-than-expected Q3 results and provided a cautious outlook for Q4. The Trust’s lack of exposure to LVMH was also a drag on relative performance, as the luxury conglomerate reported strong Q3 results, driven by improving Asian demand and resilience across key divisions. The top contributor was the position in chipmaker ASML. Shares rose on the back of solid Q3 results, driven by stronger demand in EUV and memory, while profitability benefitted from an improved mix. Assa Abloy also added value after delivering positive organic sales growth for Q3, as ongoing weakness in the U.S. residential market was offset by resilient non-residential demand, and strong momentum in the Electromechanical division.
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 11.7% and 22.5% respectively, compared to FTSE World Europe ex UK Total Return Index that returned 21.3%.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
