Sam Morse reduced exposure to companies forced into cutting their dividends due to the coronavirus crisis as his Fidelity European Values Trust (FEV) suffered a 20% cumulative cut in payouts.
Morse told Investment Week the majority of the £1.1bn trust's holdings had weathered the Covid-19 pandemic well, leading to outperformance in the year to date. FEV is up 6.3% to 9 October compared to its FTSE World Europe ex UK benchmark's return of 2.3% and its IT Europe ex UK sector peers' average 4.9% gain, according to FE fundinfo. The manager said there had been a variety of reasons holdings cut their payouts, with some forced by regulators and politicians while others had more fundamental issues. Multi-manager funds up equity allocations as European funds find favour in Q2 20...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes