ABOUT FIDELITY EUROPEAN VALUES PLC
📊 Fidelity European Values plc is a UK-based investment trust dedicated to long term investments across across Continental Europe.
📊 The company has a history dating back to 1991, and today is the Trust is chaired by Vivian Bazalgette, and managed by Fidelity International.
📊 The Trust invests predominantly in continental European equities (and their related securities) and up to 20% of gross assets may be invested in companies outside of the continent.
📊 It follows a consistent bottom-up approach, seeking to identify companies able to grow dividends over a three to five-year horizon.
📊 Aiming to capture the diversity of Europe, the trust looks across a range of countries and sectors, and researches and selects stocks that can grow their dividends consistently, irrespective of the economic environment.
📊 The portfolio of stocks is fairly concentrated at between 40 to 50 diversified stocks with no bias to a particular sector or company size.
OVERVIEW OF FIDELITY EUROPEAN VALUES PLC
Fidelity European Values plc uses a bottom-up process to select companies that have solid fundamentals and focuses on attractively-valued companies, with strong balance sheets and a track record in cash generation, which has the potential to grow dividends consistently on a three to five year view.
These types of companies offer a good combination of fundamental value and therefore downside protection, as well as good growth prospects which are likely to be identified by the market in the future and therefore lead to a rerating of their share price.
Data shows that companies of this nature tend to outperform, however the trick is to identify those future dividend growers before they have done so and before the rest of the market.
This requires patience and discipline from the company’s extensive analyst team in London and throughout Europe.
The Trust is permitted to invest up to 20% in UK listed stocks or other stocks outside of continental Europe.
This flexibility allows the trust to invest in a wider range of stocks, which meet the investment criteria.
VISION & VALUES OF FIDELITY EUROPEAN VALUES PLC
Fidelity European Values plcseeks to invest in companies which uphold its values of corporate social responsibility, particularly as they pertain to community and environmental impacts.
The Trust understands that investing in assets which have a positive impact on the communities in which they operate, while conducting operations in such a way that lowers their GHG emissions and sustains the environment, contributes to the long-term value of these assets.
MARKET PERFORMANCE OF FIDELITY EUROPEAN VALUES PLC
Fidelity European Values plc currently trades on the Financial Times Stock Exchange (FTSE), where investors can buy shares under the stock symbol –FEV.
Data from the company’s 2019 financial analysis that during the first six months of the year the net asset value (“NAV”) total return was up by 19.9% compared to a total return of 17.5% for the FTSE World Europe (ex UK) Index which is the Company’s Benchmark Index.
The share price total return was up by 24.5%, which is above the NAV total return because of a narrowing of the share price discount to NAV.
This out-performance was partly due to gearing over the period which contributed about one third of the additional return.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy FIDELITY EUROPEAN VALUES PLC Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN FIDELITY EUROPEAN VALUES PLC STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE FIDELITY EUROPEAN VALUES PLC STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of FIDELITY EUROPEAN VALUES PLC stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy FIDELITY EUROPEAN VALUES PLC stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?