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.