8th Sep 2026 10:29
(Alliance News) - Fidelity European Trust PLC on Tuesday reported a higher dividend and net asset value per share in the first six months of 2026 but underperformed its benchmark, and it announced the retirement of longtime portfolio manager Sam Morse.
Fidelity European, an investor in European equities, announced a dividend for the period of 4.20 pence per share, 7.7% higher compared with the 3.90p paid a year earlier.
Fidelity European, whose portfolio includes the likes of chipmaker ASML Holding NV and bank BNP Paribas SA, said its NAV per share improved 4.8% to 455.16 pence at June 30, from 434.39p at the end of December.
Fidelity European shares were down 0.5% at 433.85 pence on Tuesday morning in London.
The company posted a net asset value total return of 6.4% for the first half of the year, underperforming its benchmark, the FTSE World Europe ex UK Index, which returned 10.3% over the same period.
The company said: "During the period, investors generally favoured companies expected to benefit directly from artificial intelligence investment and more economically sensitive businesses whose share prices tend to move more sharply. By contrast, many quality companies with reliable earnings and a record of growing their dividends remained out of favour."
Fidelity European noted that defence and technology stocks took the lead of the market as the year progressed. It said its top contributor was Veldhoven, Netherlands-based ASML, while private equity businesses Partners Group Holding AG and 3i Group PLC were the principal detractors from performance over the period. Another strong contributor was TotalEnergies SE, which benefited from stronger oil and gas prices.
Looking ahead, the company said it expects continued uncertainty in the trajectory of European equities due to geopolitical and energy prices instability, in particular due to the conflicts in the Middle East and between Russia and Ukraine. It also mentioned tensions between China and the US, South Korea and North Korea, the South China Sea dispute and China and Taiwan relations as driving instability.
The company said volatility created chances to strengthen its portfolio as it increased exposure to AI and data centres investments, European banks, and started a position in the German defence company Hensoldt AG.
In a separate announcement on Tuesday, the company said Sam Morse, portfolio manger of the company since 2011, will retire in October 2027.
Ahead of Morse's retirement, Alexander Laing will join him and Marcel Stotzelin on the current portfolio management team starting November 2026. Laing is already portfolio manager for Fidelity's Climate Solutions Fund and Circular Economy strategy and co-portfolio manager on the Water & Waste Fund.
By Camilla Borri, Alliance News reporter
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