fund
Fidelity American W
A multi cap US equity fund unconstrained by benchmarks.
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4802.00p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.75%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.95%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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0.70%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
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 | £912m |
| Yield | 0.70% |
| Charging basis | Income |
| Dividends paid | Acc units only |
Charges
| Standard 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% |
Allocation
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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
- 15/16 0.00%
- 16/17 -0.17%
- 17/18 -0.24%
- 18/19 -0.03%
- 19/20 -0.16%
Bestinvest MRI
- 3 years -0.14%
- 5 years 0.00%
- Career -0.20%
- 3 years 38.20%
- 5 years 0.00%
- Career 23.30%
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 4.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.2%. During the worst period of relative performance (from September 2015 - January 2020) there was a decline of 13% relative to the index. The worst absolute loss has been 13%.
Periods of worst performance
| Absolute | -13.00% (July 2019 - March 2020) |
| Relative | -13.00% (September 2015 - January 2020) |
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.
Allocation
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Top 10 holdings
Data accurate as at 29 February 2020
| 6.9822% | Allergan Plc |
| 4.3373% | Zayo Grp Hldgs Inc |
| 3.9848% | Berkshire Hathaway Inc |
| 3.7629% | Alphabet Inc |
| 3.1387% | Microsoft Corp |
| 2.8945% | Tiffany & Co |
| 2.5909% | Amazon.com Inc |
| 2.3307% | Philip Morris International Inc |
| 2.3012% | Mellanox Technologies Ltd |
| 2.177% | Bank Of America Corp |
| Source: Trustnet |
Sector breakdown
| Information Technology | 21.00% |
| Health Care | 16.00% |
| Financials | 15.00% |
| Communications | 13.00% |
| Consumer Discretionary | 8.00% |
| Industrials | 7.00% |
| Consumer Staples | 6.00% |
| Others | 3.00% |
| Materials | 3.00% |
| Energy | 3.00% |
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