Fidelity European Values Beats Benchmark But Makes Negative Return

LONDON (Alliance News) - Fidelity European Values PLC on Friday said it outperformed its ...

Alliance News 15 March, 2019 | 10:44AM
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LONDON (Alliance News) - Fidelity European Values PLC on Friday said it outperformed its benchmark in 2018, despite reporting a negative return for a period, considered "a difficult year for equities".

For the year, the investment firm reported a net asset value negative return of 4.8%. By comparison, its benchmark, the FTSE World Europe ex UK index, saw a negative return of 9.5%.

Fidelity European's net asset value per share as at December 31 was 231.77 pence, down from 248.08p the same date the year before.

The company said its share price total return for the period fell by 6.8%, leading to a discount to net asset value of 10.7%, widened from 8.6% a year earlier.

Shares in Fidelity European Values were up 1.0% at 226.23p on Friday.

The company said that 2018 had been a year of market uncertainty, with continued concerns over Brexit and its potential effect on the European economy, as well as rising interest rates, a government budget deficit in Italy and political unrest in Spain.

Within Fidelity's portfolio, the financial sector provided the greatest boost to the annual performance, as well as an overweight position in technology and an underweight position in automobiles.

Looking ahead, slowing indicators for the global economy have led investors to take up a cautious stance, and while Europes economic expansion is expected to be supported by domestic demand, ongoing global uncertainty is expected to keep expansion at a moderate pace.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Fidelity European Values Ord 233.50 509
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