By Emmy Hawker, Senior reporter, Trustnet, 9 July 2025:
With US president Donald Trump shaking up trade, diplomacy and the post-war global order, Europe is set to benefit from investors’ rotation away from North America – and there are several funds that the experts think could benefit from this..
Matthew Read, senior analyst at QuotedData, flagged Fidelity European Trust as an attractive fund that “looks well-positioned to harness Europe’s long-awaited recovery”.
He noted that the trust has one of the strongest long-term performance records in its peer group, tending to target a blend of resilient European global champions, such as SAP and Novo Nordisk.
The trust’s planned merger with Henderson European Trust could create a £2.1bn powerhouse that is better resourced to capture US rotation flows, said Read.
“This should help keep the discount narrow, but shareholders also have the comfort of the trust’s policy to maintain the discount in single digits in normal market circumstances,” he added.
Read also flagged Baillie Gifford European Growth as well-positioned to benefit from Europe’s long overdue recovery.
“The trust is the most growth-focused of its peers and, following a bumper period during Covid, this has weighed on its performance during the last four years, leaving it on a circa 9% discount – the widest in its peer group,” said Read.
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