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 equity exposure across market cycles.

levels not seen in the Eurozone area since 2008. The knock-on impact from COVID-19 on businesses and consumers continued during 2022. Sam Morse and Marcel Stötzel, your Portfolio Managers, 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 has remained an appealing feature of the Company. The Portfolio Managers' rigorous approach to stock selection has benefited shareholders during the difficult past two years, and should continue to do so in the future.

The reporting period was dominated by the Ukrainian crisis and threats from Russia, the energy crisis and supply chain disruptions affecting various industries, and inflation surpassing

Vivian Bazalgette, Chairman

Fidelity European Trust PLC | Annual Report 2022

At a Glance

The Company's net asset value per ordinary share decreased by 3.6% and the share price by 3.8%, whilst the Benchmark Index decreased by 7.0% (all performance data on a total return basis).

FTSE World Europe (ex UK) Index total return1, 3 Year ended 31 December

2022 -7.0%

2021 +17.4%

2020

2019 +20.4% 2018 -9.5%

-10

22

+8.6%

  • 1 Includes reinvested income.

  • 2 Alternative Performance Measures. See pages 79 and 80.

  • 3 The Company's Benchmark Index.

  • 4 Includes 1.79 pence from the additional revenue generated from the change in the allocation of the management fees and finance costs.

As at 31 December 2022

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 must work within the guidelines set out in the Investment Policy.

Financial Highlights

2022

2021

Assets at 31 December

Gross Asset Exposure1

£1,542.9m

£1,638.2m

Gross Gearing2 (see Note 18 on page 78)

11.7%

11.1%

Net Market Exposure

£1,542.9m

£1,638.2m

Net Gearing2 (see Note 18 on page 78)

11.7%

11.1%

Shareholders' Funds

£1,381.0m

£1,474.2m

Net Asset Value ("NAV") per Ordinary Share2

337.87p

358.68p

Ordinary Share Price and Discount at 31 December

Ordinary Share Price at year end

319.50p

340.50p

Ordinary Share Price - year high

345.00p

341.00p

Ordinary Share Price - year low

267.00p

264.00p

Discount at year end2

5.4%

5.1%

Discount - year high

11.8%

9.9%

Discount - year low

3.8%

3.8%

Results for the year ended 31 December - see page 58

Revenue Return per Ordinary Share2

9.00p

7.50p

Capital (Loss)/Return per Ordinary Share2

(22.88p)

61.15p

Total (Loss)/Return per Ordinary Share2

(13.88p)

68.65p

Final Dividend proposed per Ordinary Share

4.62p

4.18p

Interim Dividend paid per Ordinary Share

3.08p

2.65p

Total Dividends for the year

7.70p

6.83p

Ongoing Charges for the year ended 31 December2, 3

0.78%

0.79%

  • 1 The value of the portfolio exposed to market price movements.

  • 2 Alternative Performance Measures. See pages 79 and 80.

  • 3 Ongoing charges (excluding finance costs and taxation) as a percentage of the average net asset values for the year (prepared in accordance with guidance issued by the Association of Investment Companies). A definition of Ongoing Charges is in the Glossary of Terms on page 90.

Standardised Performance Total Return1 (%)

NAV per Ordinary ShareOrdinary Share PriceFTSE World Europe (ex UK) Index

+214.1 +192.6

1 year ended 31 December 2022

3 years ended 31 December 2022

5 years ended 31 December 2022

10 years ended 31 December 2022

1 Includes reinvested income.

Sources: Fidelity and Datastream.

Past performance is not a guide to future returns.

01

Annual Report 2022 | Fidelity European Trust PLC

Contents

Chairman's Statement

Read more on pages 02 to 05

Portfolio Managers' Review

Read more on pages 06 to 11

Spotlight on the Top 10 Holdings

Read more on pages 12 and 13

Strategy

Chairman's Statement 02

Portfolio Managers' Review 06

Spotlight on the Top 10 Holdings 12

Portfolio Listing 14

Distribution of the Portfolio 16

Attribution Analysis 18

Ten Year Record 19

Summary of Performance Charts 20

Strategic Report 22

ESG and Sustainable Investing at Fidelity International 32

ESG in the Investment Process 34

Governance

Board of Directors 36

Directors' Report 37

Corporate Governance Statement 41

Directors' Remuneration Report 45

Statement of Directors' Responsibilities 48

Report of the Audit Committee 49

Financial

Independent Auditor's Report 52

Income Statement 58

Statement of Changes in Equity 59

Balance Sheet 60

Notes to the Financial Statements 61

Alternative Performance Measures 79

Financial Calendar 81

Information for Shareholders

Notice of Meeting 82

Shareholder Information 86

Data Protection 88

Glossary of Terms 89

Alternative Investment Fund Manager's Disclosure 92

STRATEGY

GOVERNANCEFINANCIALINFORMATIONFORSHAREHOLDERS

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Fidelity European Values plc published this content on 29 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2023 17:23:10 UTC.