FIDELITY EUROPEAN TRUST PLC FIDELITY EUROPEAN TRUST PLC
Half-Yearly Report for the
six months ended 30 June 2023
Investment Objective and Overview
The Company aims to achieve long term growth in both capital and income by predominantly investing in equities (and their related securities) of continental European companies.
Fidelity European Trust PLC aims to be the cornerstone long term investment of choice for those seeking European exposure across market cycles.
With inflation remaining high, the war in Ukraine continuing, and energy and recession risks still around the corner, it is pleasing to see that since the beginning of the year European stocks have outperformed their US counterparts.
Sam Morse and Marcel Stötzel, your Portfolio Managers, continue to adopt a cautious investment approach, building
a balanced portfolio which aims, among other things, to manage the risk of adverse developments. The focus on attractively valued dividend growers with strong balance sheets and a track record in cash generation remains an appealing feature of the Company. The Portfolio Managers' rigorous approach to stock selection has benefited shareholders in recent difficult years and should continue to do so in the future.
Vivian Bazalgette, Chairman
Winner 2023
Contents
Portfolio Managers' Half-Yearly Review
Read more on pages 04 to 06
Net Asset Value per Ordinary Share as at 30 June
2023370.55p
2022311.61p
2021330.50p
Ordinary Share Price
as at 30 June
2023344.50p
2022282.00p
2021303.50p
01
Half-Yearly Report 2023 | Fidelity European Trust PLC
Directors' Reports | REPORTS | ||
At a Glance | 02 | ||
DIRECTORS' | |||
Financial Highlights | 03 | ||
Portfolio Managers' Half-Yearly Review | 04 | ||
Twenty Largest Holdings | 07 | ||
Interim Management Report and Directors' | |||
Responsibility Statement | 09 | ||
Financial Statements | |||
Income Statement | 12 | ||
STATEMENTSFINANCIAL | |||
Information for Shareholders | 14 | ||
Statement of Changes in Equity | |||
Balance Sheet | 16 | ||
Notes to the Financial Statements | 17 | ||
Shareholder Information | 27 | ||
Directory | 29 | ||
Data Protection | 30 | ||
Glossary of Terms | 31 | ||
INFORMATION FOR SHAREHOLDERS | |||
02
Fidelity European Trust PLC | Half-Yearly Report 2023
At a Glance
Six months ended 30 June 2023
Net Asset Value per
Ordinary Share
total return1, 2
+11.1%
(30 June 2022: -12.0%)
FTSE World Europe (ex UK)
Index total return1, 3
+9.3%
(30 June 2022: -15.1%)
Ordinary Share Price
total return1, 2
+9.3%
(30 June 2022: -16.0%)
Interim Dividend per
Ordinary Share
3.26p
(30 June 2022: 3.08p)
- Includes reinvested income.
- Alternative Performance Measures (see Glossary of Terms on page 31).
- The Company's Benchmark Index.
As at 30 June 2023
Shareholders' Funds
£1,514.5m
Market Capitalisation
£1,408.1m
Capital Structure
Ordinary Shares of 2.5 pence held outside of Treasury
408,730,523
Summary of the key aspects of the Investment Policy
The Investment Manager will typically focus on larger companies which show good prospects for sustainable long term dividend growth. The Investment Manager is not restricted in terms of size, industry or geographical split.
The Company predominantly invests in equities but may also invest into other transferable securities, investment companies, money market instruments, cash and deposits. It is also able to use derivatives: for efficient portfolio management in order to gain additional market exposure (gearing) and for investment purposes.
The Investment Manager works within the guidelines set out in the Investment Policy.
03
Half-Yearly Report 2023 | Fidelity European Trust PLC
Financial Highlights
30 June | 31 December | |
2023 | 2022 | |
Assets | ||
Gross Asset Exposure1 | £1,715.9m | £1,542.9m |
Gross Gearing2 (see Note 13 on page 25) | 13.3% | 11.7% |
Net Market Exposure | £1,679.7m | £1,542.9m |
Net Gearing2 (see Note 13 on page 25) | 10.9% | 11.7% |
Shareholders' Funds | £1,514.5m | £1,381.0m |
Net Asset Value ("NAV") per Ordinary Share2 | 370.55p | 337.87p |
Ordinary Share Price and Discount data | ||
Ordinary Share Price at the period end | 344.50p | 319.50p |
Discount at the period end2 | 7.0% | 5.4% |
Results for the six months ended 30 June - see pages 12 | ||
and 13 | 2023 | 2022 |
Revenue Return per Ordinary Share2 | 7.38p | 7.08p |
Capital Return/(Loss) per Ordinary Share2 | 29.91p | (49.97p) |
Total Return/(Loss) per Ordinary Share2 | 37.29p | (42.89p) |
Interim Dividend per Ordinary Share | 3.26p | 3.08p |
- The value of the portfolio exposed to market price movements.
- Alternative Performance Measures.
Total Return Performance1 (%)
NAV per Ordinary Share
Ordinary Share Price
DIRECTORS' REPORTS
FINANCIAL STATEMENTS
FTSE World Europe (ex UK) Index
+67.0 | +75.0 | ||||
+40.8 | +42.2 | +32.1 | +43.4 | ||
+21.7 | +25.2 | +19.6 | |||
+213.0
+190.3
+136.8
FOR SHAREHOLDERS
1 year ended | 3 years ended | 5 years ended | 10 years ended |
30 June 2023 | 30 June 2023 | 30 June 2023 | 30 June 2023 |
1 See Glossary of Terms on page 34.
INFORMATION
Sources: Fidelity and Datastream.
Past performance is not a guide to future returns.
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Fidelity European Values plc published this content on 11 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2023 08:47:02 UTC.
