fund
Fidelity European A
Targets long term capital growth by investing in European equities.
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188.00p
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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2243.00p
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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3.50% 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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1.50%
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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1.71%
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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1.20%
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’s objective is to achieve long term capital growth by investing in Continental European companies. The manager invests in companies of all sizes, though because of the fund’s size it is likely to be dominated by large and mid cap stocks. Sector and country weights are kept close to the benchmark, with the manager aiming to add value primarily through stock selection. The fund manager looks for stocks offering structural growth on attractive valuations.
Fund summary
| Sector | Europe Excluding UK |
| Structure | OEIC |
| Launched | November, 1985 |
| Size | £2,770m |
| Yield | 1.20% |
| Charging basis | Income |
| Dividends paid | Apr, Oct |
Charges
| Standard initial charge | 3.50% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 1.50% |
| Ongoing charges figure | 1.71% |
Allocation
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Investment process
Morse focuses on companies which pay dividends and can deliver dividend growth as a result of their structural expansion. The Fund will have a minimum of 95% invested in Continental European securities and up to 5% in companies that have a reasonable degree of exposure to Continental Europe. Morse will also have a minimum of 80% invested in developed European markets. Stocks ideas are generated by Fidelity’s European research analysts although the manager can draw inspiration from external sources as well. In the process of identifying attractive companies, the team of analysts apply the following stock screens: positive fundamentals, ability to generate cash, strong balance sheet performance and attractive valuation multiple. The manager then applies his “three good reasons to buy a company” rule looking to identify two fundamental reasons combined with one valuation argument. Once the investments are identified and included in the portfolio, the manager will constantly monitor and review each holding.
Manager research
Average monthly relative returns
- 15/16 0.00%
- 16/17 0.00%
- 17/18 0.00%
- 18/19 0.00%
- 19/20 0.00%
Bestinvest MRI
- 3 years 0.00%
- 5 years 0.00%
- Career 0.04%
- 3 years 0.00%
- 5 years 0.00%
- Career 91.80%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Sam Morse
Morse holds degrees in English Literature and in Economics from the University of North Carolina. He began his career in 1986, joining Hoare Govett in New York and working as an equity salesman in the Far East. He left in 1988 and gained an MBA from INSEAD before joining Fidelity in 1990. Originally a research analyst covering pan-European retail sectors and US furniture and carpet sectors, he rose to Senior Analyst and subsequently managed a number of the Fidelity UK funds. He moved to M&G in October 1997, eventually becoming Head of UK Equities before being made redundant in September 2003. In 2004 he rejoined Fidelity, taking up the role of Head of the institutional UK equity team and subsequently became manager of the Fidelity European fund and European Values PLC.
Track record
Sam Morse has 11.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.04%. During the worst period of relative performance (from December 2001 - February 2003) there was a decline of 9% relative to the index. The worst absolute loss has been 42%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 92%.
Periods of worst performance
| Absolute | -42.00% (December 1999 - February 2009) |
| Relative | -9.00% (December 2001 - February 2003) |
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
| 7.3275% | Nestle Sa |
| 5.7331% | Roche Hldg Ag |
| 4.1643% | Sap Se |
| 4.0891% | Lvmh Moet Hennessy Vuitton Se |
| 3.7077% | Sanofi |
| 3.4191% | Total Sa |
| 3.3646% | Asml Holding Nv |
| 3.362% | Novo-Nordisk As |
| 3.0257% | L`Oreal |
| 2.8974% | Enel Spa |
| Source: Trustnet |
Sector breakdown
| Financials | 17.00% |
| Health Care | 17.00% |
| Consumer Staples | 13.00% |
| Consumer Discretionary | 12.00% |
| Information Technology | 12.00% |
| Industrials | 10.00% |
| Materials | 8.00% |
| Utilities | 4.00% |
| Energy | 3.00% |
| Communications | 2.00% |
Portfolio
Portfolio includes 50-60 stocks. Portfolio turnover is typically 25-35% and a typical holding period is 3-5 years. A small cash balance may be held for liquidity purposes.
Constraints
Sector relative positions of +/- 5% are taken. Stock relative positions of +2% are taken