Last checked at 19 May 2020 11:02
London, UK, 19 May 2020
Edison issues review on Fidelity European Values (FEV)
Fidelity European Values (FEV) plans to change its name to Fidelity European Trust later this year to better reflect its objectives; however, there will be no change to the disciplined investment process. Manager Sam Morse continues to focus on cash-generative companies with strong balance sheets and significant dividend growth potential. He has increased the trust's level of gearing to benefit from an anticipated recovery in the European stock market, as equity prices typically discount an economic improvement by around six months. However, the manager is continuing to run the portfolio in a measured way, acknowledging that 'there is no big rush to change the portfolio, as costly mistakes can be made'. FEV has outperformed the continental European market over the last one, three, five and 10 years in both NAV and share price terms.
Having experienced valuation volatility during the recent stock market sell-off, FEV's discount is now back within its typical range. The current 7.5% discount to cum-income NAV compares with the 7.8% to 9.0% range of average discounts over the last one, three and five years. FEV currently offers a 2.8% dividend yield.
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