Edison issues review on Fidelity European Values

RNS Number : 7912C

Fidelity European Values PLC

19 June 2019

 

London, UK, 19 June 2019

Edison issues review on Fidelity European Values (FEV)

Fidelity European Values (FEV) has had a conspicuously strong period of outperformance since March 2017, building on its positive long-term track record. Its NAV total return is ahead of the AIC Europe sector average over one, three and five years, ranking first or second out of eight over each period, and FEV has clearly outperformed its benchmark over one, three, five and 10 years to end-May 2019. Helped by a reallocation of expenses between the revenue and capital accounts, the board raised the FY18 dividend by 44.4% to 6.28p - representing a 2.5% yield - while also adding to reserves, and an interim dividend will be introduced in FY19. FEV's discount has narrowed to 8.3%, similar to the sector average of 8.5% but wider than its five-year low of 2.8%, and from 2019 the board is seeking to maintain the discount in single digits in normal market conditions.

The lower fee structure in place since April 2018 has given FEV a more competitive 0.88% ongoing charge, while the 75% allocation of management fees and finance costs to capital from FY18 also supports a higher, fully covered dividend. Together with recent outperformance, these moves appear likely to have contributed to FEV's discount narrowing to 8.3% from a wide point of 17.3% in July 2016.

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