Fidelity European A

Targets long term capital growth by investing in European equities.

  • 214.60p
    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.

  • 2552.00p
    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?

  • 3.50% 0.00%

    Initial charge

    Some 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!

  • 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).

  • 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.

  • 1.00%
    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…

Prices as at 13 December 2019, fund data last updated 12 March 2014

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 £2,711m
Yield 1.00%
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%

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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

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 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 June 2004 it was announced he was rejoining 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 31 July 2019

7.6131% Nestle Sa
5.3707% Roche Hldg Ag
4.2312% Lvmh Moet Hennessy Vuitton Se
4.204% Sap Se
4.0928% Total Sa
3.6725% Asml Holding Nv
3.2438% Essilorluxottica
3.1729% Sanofi
2.8778% L`Oreal
2.8333% Deutsche Borse Ag
Source: Trustnet

Sector breakdown

Financials 17.00%
Health Care 15.00%
Consumer Staples 13.00%
Industrials 13.00%
Consumer Discretionary 12.00%
Information Technology 11.00%
Materials 8.00%
Energy 7.00%
Communications 3.00%
Utilities 1.00%

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

Key Investor Information - Income

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Key Investor Information - Accumulation

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