Fidelity Europe Quality Income UCITS ETF ACC-GBP (hedged)

Issuer: Fidelity International

Asset Class: Equity

TER: 35bps

Trading Currency: GBP

Pays Income: False

Listing Date: 01 Dec 2017

Ticker: FEQP

ISIN: IE00BYSX4408

This actively managed fund offers exposure to a curated portfolio of companies across developed Europe, focusing on two key factors: quality and sustainable income. The investment strategy is designed to identify well-managed businesses with strong financial health, indicated by stable earnings, robust balance sheets, and consistent cash flow generation. By concentrating on these 'quality' characteristics, the portfolio aims to exhibit resilience during market downturns and capture long-term capital growth potential. The 'income' component of the strategy targets companies with a reliable history of dividend payments and the capacity to maintain or grow them over time, providing a source of total return.

The fund is not constrained by a benchmark, granting the portfolio managers the flexibility to invest in their highest-conviction ideas without being tied to index weightings. This approach can lead to a portfolio that differs significantly from the broader market, potentially offering diversification benefits. This particular share class is accumulating, meaning any income generated is automatically reinvested back into the fund to compound growth. Furthermore, it incorporates a currency hedge, which seeks to minimize the impact of fluctuations between the Euro and the British Pound on investor returns. This makes it a suitable option for those seeking a core European equity allocation with a defensive tilt and reduced currency risk.