Fidelity European Trust July summary – financial stocks drive gains

Fidelity European Trust PLC (LON:FEV) monthly factsheet for the period ended July 2023.

Portfolio Manager Commentary
Continental European equities continued to advance in July on cooling inflation in the eurozone and the US, and the announcement of additional stimulus measures in China. Both the European Central Bank (ECB) and the US Federal Reserve raised interest rates by 0.25 percentage points, as widely expected by
markets. ECB’s overall tone moved in a dovish direction, with the bank expecting inflation to drop further over the remainder of the year. The eurozone economy grew modestly during the second quarter with preliminary estimates showing that GDP expanded by 0.3%, contributing to the perception of a soft-landing scenario.

During the month, the Trust recorded positive returns but underperformed the index. Security selection in industrials, health care and technology detracted from relative returns. However, strong performance of financials stocks drove gains. At a stock level, MTU Aero Engines was negatively impacted by the recall of
GTF engines due to metal contamination issues. Positively, MTU reported in line Q2 results. Among the key contributors, private equity company Partners Group rallied after reiterating AUM guidance for the full year.

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 17.4% and 23.5% respectively, compared to 16.1% for the index.

Fidelity European Trust PLC (LON:FEV) is a European investment trust. It  aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Fidelity International

More articles like this

Fidelity European Trust

European markets open strong as optimism rises

European stocks started the week with gains, driven by positive global market sentiment. In early trading, Germany’s DAX climbed by 0.7%, France’s CAC 40 saw a rise of 0.8%, and the UK’s FTSE 100 gained 0.4%.

Fidelity European Trust

Building a strong data economy for Europe’s future

The European Union is determined to establish a robust data economy as a foundation for its global competitiveness and digital independence. In the automotive industry, data is already transforming technologies, with innovations such as real-time traffic

Fidelity European Trust

European stocks begin the week with gains

European stocks rose on Monday, with the pan-European Stoxx 600 index up 1.2% by mid-morning in London. All sectors were in positive territory, led by construction and materials stocks, which gained over 2%. This upturn followed

Fidelity European Trust

Election week boosts European markets

European markets opened the week on a positive note, climbing on Monday after a slow start. Investors are keeping a close watch on the U.S. presidential election scheduled for Tuesday, with significant implications for markets across

Fidelity European Trust

European stocks hold steady amid improved market sentiment

European stocks remained largely unchanged as easing tensions in the Middle East brought some optimism, though declining oil prices exerted pressure on the energy sector. By mid-morning in London, the Stoxx Europe 600 Index had flattened

Fidelity European Trust

European stock market and the economic outlook

The European stock market has shown resilience despite global economic challenges in recent years. It continues to be a key focus for investors due to the region’s established financial infrastructure and the strength of its major

Fidelity European Trust

Eurozone retail sales show modest growth in August

Retail sales in the eurozone experienced a modest increase in August, showing a recovery after a stagnant performance in July. According to recent data from Eurostat, retail trade volumes in the euro area grew by 0.2%

Fidelity European Trust

European stocks climb amid global market struggles

European stocks saw an increase on Monday, defying the negative trends observed in both Wall Street and Asia-Pacific markets. By mid-morning in London, the pan-European Stoxx 600 index had risen by 0.57%, with most sectors and

Fidelity European Trust

A growing number of European businesses embrace AI

Over the past year, the adoption of AI by European businesses has grown by 32%, and this trend, if sustained, could add €600 billion in gross value added (GVA) to the European economy by 2030. This