Fidelity European Trust rises strongly on favourable stock selection (LON:FEV)

Fidelity European Trust PLC (LON:FEV) monthly factsheet for the period ended 30th April 2023.

Portfolio Manager Commentary

Continental European equities continued their strong run in April. Despite a resurgence of concerns around the global banking sector towards the end of the month, investors were encouraged by
positive company results, China’s continued economic reopening and a further reduction in US headline inflation. European equities outperformed US, Asian and Emerging Market equities. Economic data released in the month showed that Europe avoided recession over the first quarter, with initial estimates of gross domestic product growth of 0.1% for the euro area. Eurozone inflation accelerated over April, remaining well above the European Central Bank’s (ECB) 2% target. ECB President Lagarde stated that “there’s still a little way to go on the path” to bring inflation closer to the target rate.

During the month, the Trust recorded positive returns and outperformed the index. The outperformance was driven by favourable security selection and positioning in the consumer discretionary and materials sectors. Stock specific contributors within consumer staples and health care also supported performance. At a stock level, luxury eyewear manufacturer and distributor EssilorLuxottica reported strong first quarter results with sales ahead of expectations across all regions.

On a rolling 12-month basis, the Trust recorded NAV and share price returns of 17.2% and 21.9% respectively, compared to 13.2% 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.

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