Fidelity European Trust PLC (LSE:FEV) is the best performing listed investment fund in Europe, according to a recent analysis by Stifel.
It is closely followed by Henderson European Focus Trust PLC (LSE:HEFT), with Henderson EuroTrust PLC (LSE:HNE) also “outperforming”, analysts said, adding that despite its track record European Opportunities Trust PLC (LSE:JEO) has had a “disappointing past five years”.
Stifel analysts said in a research note on Thursday that the European Opportunities fund’s future “hangs in the balance”, given the continuation vote that is due to take place on 15 November.
That vote will give investors the opportunity to express their opinion on the future of the investment trust, which also announced this month that it will make a conditional tender offer for 25% of the company's share capital in 2026 if its net asset value return does not match the MSCI Europe Index benchmark within three years.
Consolidation could be on the cards more broadly in the European investment trust space, the analysts said.
“We do wonder whether consolidation within the sector is on the cards, with seven funds in total (three funds in addition to our four under coverage) making it look crowded,” they said.
“We retain Positive ratings on Fidelity European and Henderson European Focus, and remain Neutral on Henderson Eurotrust and European Opportunities.”
According to Stifel's analysis, which compared information ratios in its coverage list against current discount levels, Fidelity European was the “standout performer” generating an average return of more than 10.4% per year.
Henderson European Focus maintains a “good information ratio” based on a 9.9% return per year “with slightly higher volatility”.
Henderson Eurotrust also outperformed, but to a lesser extent, according to analysts.
European Opportunities has meanwhile “had a disappointing past five years”, not performing since exiting Wirecard in June 2020 and its decision to move away from consumer stocks, they added.