Fidelity European Values, managed by Sam Morse (pictured) has announced its results for the six months ended 30 June 2015. During the period, the trust’s NAV total return was 6.1%, which was ahead of that of the FTSE World Europe (ex UK) Index of 4.1%. The share price total was even further ahead at 9.8% reflecting a narrowing of the discount during the period (4.6% to 1.8%).
The main positive contributors to performance were banks and financial institutions. The manager says that two banks in particular, Intesa Sanpaolo and UBS, benefitted from strong results, robust capital generation and an on-going commitment to dividends and dividend growth. Other, non-financial, contributors included Novo-Nordisk (diabetes care), which extended its strong performance of 2014 as the company confirmed the likely approval of a key basal insulin drug in the U.S. market, and Aena, the Spanish airports operator, which made a very strong debut, climbing sixty percent from its IPO price in February. Holdings in two regulated Spanish companies, Red Electrica and Enagas, detracted from performance during the period. The manager attributes this to concerns about possible interference if the populist Podemos party, mimicking Syriza’s electoral success in Greece, were to do well in Spain’s year-end national elections.
Fidelity European Values beats benchmark during first half : FEV