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FIDELITY UK GROWTH - Fund overview

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Overview of FIDELITY UK GROWTH

This is a predominately large and mid cap UK equity fund that targets long term capital growth. The fund is generally concentrated with manager Tom Ewing utilising a fundamental approach based on company visits and industry research. He will also utilise Fidelity's extensive research team. Ewing is a relatively young manager who was installed as part of Fidelity's shake up of their UK equity fund managers.

Standard Initial Charge

3.50% 0.50%

Invest via Bestinvest

to save 3.00%

Fund summary

Sector  UK All Companies
Product type  OEIC
Launched  June, 1985
Size  £469m
Yield 0.0%
Charging basis  –
Dividends paid  Acc units only.
Bid price 242.80p -2.20p

Fund Charges

Standard Initial charge 3.50%
Initial charge via Bestinvest 0.50%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Total expense ratio 1.70%
Reduction in yield (10yr) 1.75%

Bestinvest says


This fund is true to the Fidelity spirit it that it's manager, Tom Ewing, follows a pragmatic and research intensive process to selecting stocks. However, given his relative inexperience as a fund manager and the fact that we have higher conviction with other UK equity managers we suggest holders switch to one of our rated UK funds that have a large and mid cap flavour. Funds to consider include, JO Hambro CM UK Opportunities and M&G Recovery.

Portfolio

fidelity uk growth asset allocation illustration
Allocation Proportion
Equity 99%
High yield bonds
Quality bonds
Property
Commodities
Hedge
Fund cash 1%
fidelity uk growth equity geographic illustration
Allocation Proportion
UK 95%
Europe 3%
Nth America 0%
Japan 0%
Pacific 1%
Other Equity 1%
fidelity uk growth equity capitalisation illustration
Allocation Proportion
Large Caps 63%
Mid Caps 25%
Small Caps 12%

Investment process


The manager selects companies according to where he thinks that valuations understate the a companies potential growth and where the manager views that a share provides 'something for nothing'. In the case of the latter this is where he feels that stocks are fair value but ignore, for example, a new drug patent that would dramatically change a companies earnings outlook. In both cases the manager feels that stocks are often defined by a single key factor.
Additionally the manager is true to Fidelity's stock picking style as he aims to achieve a unique insight; therefore company visits and utilisation of industry consultants is a key part of the process. Quantitative methods are not greatly utilised.
There is no formal universe for the fund, however, investments will be focused on large and mid cap stocks. The manager aims to add value from stock picking rather than sector rotation. Naturally Fidelity's analytical base is an important contributor as our the manager's colleagues on the UK team.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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