LONDON (ShareCast) - (Sharecast News) - Fidelity European Values on Friday reported that it outperformed its benchmark index in the first half of the year, though the company warned investors of "a difficult period" ahead.
The FTSE 250-listed investment trust said that net asset value total return rose 19.9% for the six months ended 30 June, outperforming its benchmark index which returned 17.5% following strong contributions from 3i Group, LVMH Group and SAP.

Meanwhile, the discount to net asset value narrowed from 10.7% to 7.5%, due to a share price total return of 24.5% as the energy and technology sectors stood out as the standout performers.

The fund said that as all asset classes had risen this year in anticipation of easier monetary policy, there was a risk that investors would be disappointed by the scale of monetary easing in the months ahead or if that easier policy fails to kick-start global economic and corporate earnings growth.

"The portfolio manager will, as always, continue to focus on attractively-valued companies which are able to sustain consistent dividend growth. The challenge of finding companies that meet both of those conditions has led to a reduction in the number of names in the portfolio. This suggests that the stock markets of continental Europe may be due a more difficult period ahead," said the trust.

Fidelity European Values' shares were down 1.45% at 250.32p at 1036 BST.

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