Fidelity American W

A multi cap US equity fund unconstrained by benchmarks.

  • 4703.00p Price (Inc)
  • - Price (Acc)
  • 0.00% 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.95% Ongoing charges
  • 0.10% Yield

Fund data last updated 20 November 2019

The fund targets long term capital growth from a portfolio composed primarily of US equities. The manager invests across the market cap spectrum, targeting companies with improving fundamentals not yet captured in their share price. Though relatively unconstrained, the portfolio has a fairly large number of holdings and sector positions are kept close to the benchmark. Following a prolonged period of underperformance we put this on a 1-star SELL rating in September 2012. We suspended this rating in December 2012 on a change of manager.

Fund summary

Sector North America
Structure OEIC
Launched October, 2012
Size £950m
Yield 0.10%
Charging basis Income
Dividends paid Acc units only

Charges

Initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.95%

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Investment process

The manager combines Fidelity’s proprietary research with his own company analysis, and looks for companies where improving fundamentals are not captured in the valuation. This may be due to such factors as: a) a secular change in the company; b) structural change in the industry; c) short-term factors impacting share price where long-term fundamentals remain; d) restructuring; e) companies where sector relative valuations do not reflect potential; and f) stocks not being followed by other analysts (mainly small-cap). The fund invests across the market cap spectrum; sector positions are typically fairly close to the benchmark, though they are a by-product of stock selection. Though the process is primarily bottom-up (companies analysed in their own right) research also incorporates a global perspective, therefore market sentiment, technical inputs and macro economic factors (world economic influences) are also considered.

Though fund manager Aris Vatis has added some value over his tenure, returns have been inconsistent. Therefore we have higher conviction in our rated funds in the IA North America sector. In September 2012 we put this fund on a 1-star SELL rating following a prolonged period of underperformance. We suspended this rating in December 2012 on a change of manager.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 -0.38%
  • 16/17 -0.17%
  • 17/18 -0.35%
  • 18/19 0.07%

Bestinvest MRI

  • 3 years -0.15%
  • 5 years 0.00%
  • Career -0.25%
  • 3 years 38.60%
  • 5 years 0.00%
  • Career 24.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Aditya Khowala

Khowala is a Portfolio manager of Fidelity American fund since September having worked at Fidelity since 2006 including working on Fidelity’s UK Research Discipline from 2008-11. From 2006-11 he was European Equity Research Analyst, covering Banking (West European Banks) and Energy (European Large Cap Integrated, Services and E&Ps). Education: He has MBA (with hons), IMD Lausanne; a Post Graduate diploma in Management IIM India and Bachelor of Technology in Computer Science, India.

Track record

Aditya Khowala has 4.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.25%. During the worst period of relative performance (from September 2015 - August 2018) there was a decline of 13% relative to the index. The worst absolute loss has been 7%.

Periods of worst performance

Absolute -7.00% (November 2015 - January 2016)
Relative -13.00% (September 2015 - August 2018)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 July 2019

4.555% Berkshire Hathaway Inc
3.699% Zayo Grp Hldgs Inc
3.3296% Bank Of America Corp
3.1253% Alphabet Inc
3.0407% Microsoft Corp
2.9971% Walmart Inc
2.8511% Chevron Corp
2.7027% American Express Co
2.7014% Mellanox Technologies Ltd
2.5877% Disney (Walt) Co
Source: Trustnet

Sector breakdown

Information Technology 22.00%
Financials 16.00%
Communications 15.00%
Health Care 13.00%
Consumer Staples 6.00%
Industrials 6.00%
Money Market 5.00%
Energy 4.00%
Consumer Discretionary 4.00%
Materials 4.00%

Portfolio

The portfolio comprises 100 - 130 holdings.

Constraints

Up to 20% of the portfolio can be invested outside the US. Sector positions cannot deviate by more than 10% from the index.

Key Investor Information

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