Fidelity Index UK A

One of the lowest cost FTSE All-Share tracker funds.

  • 112.12p Price (Inc)
  • - Price (Acc)
  • 0.00% Initial charge
  • 0.30% Annual management charge
  • 0.30% Ongoing charges
  • 2.40% Yield

Prices as at 06 December 2019, fund data last updated 02 August 2011

This tracker fund aims to achieve long-term capital growth by replicating the performance of the FTSE All-Share index as closely as possible. This index comprises over 600 of the largest UK equities which together make up around 97% of the UK equity market by value. The fund pursues a policy known as "partial replication", holding all of the larger companies in the index but only a representative sample of the smaller stocks. The fund's Ongoing Charges Figure is very competitive.

Fund summary

Sector UK All Companies
Structure OEIC
Launched January, 1996
Size £2,636m
Yield 2.40%
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 0.30%
Ongoing charges figure 0.30%

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Investment process

The fund aims to match the returns of the FTSE All-Share index as closely as possible, with minimum tracking error. This index is made up of the FTSE 100, the FTSE 250 and FTSE Small Cap indices - over 600 companies in total. To achieve the objective the fund manager uses a technique called "partial replication", holding all of the shares in the FTSE 350 (FTSE 100 + FTSE 250) but only a sample of the smaller companies. By using "optimised sampling" he aims to replicate the sector and market capitalisation balance of the FTSE Small Cap index and hence give similar performance characteristics, but to avoid the dealing costs involved in holding all of the smaller companies. Though primarily an equity fund, the manager will also use futures, a type of derivative which provides liquid exposure to the whole of the index. These are used to manage cash balances in the fund - by buying and selling futures the manager can regulate market exposure in response to inflows and outflows without the costs involved in trading all of the shares in the portfolio. The fund is managed on a purely technical basis.

This fund provides low cost passive exposure to the UK equity market. The FTSE All-Share index gives investors substantial diversification including some international exposure, though it can be concentrated by company size - the multinationals of the FTSE 100 make up around 85% of the index. By using a tracker fund investors remove the possibility of underperformance, though conversely they miss out on the benefits of a successful active manager.

Manager research

Average monthly relative returns

  • 14/15 -0.19%
  • 15/16 0.03%
  • 16/17 0.00%
  • 17/18 -0.02%
  • 18/19 -0.05%

Bestinvest MRI

  • 3 years -0.02%
  • 5 years -0.05%
  • Career -0.03%
  • 3 years 47.20%
  • 5 years 40.50%
  • Career 41.70%

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

Geode Capital Management

Geode Capital Management was founded in 2001 as a unit of Fidelity Investments, with the aim of developing systematic investment strategies. It became a standalone company in 2003. The company is based in Boston, and is privately held with an independent board.

Track record

Geode Capital Management has 6.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.03%. During the worst period of relative performance (from July 2014 - January 2016) there was a decline of 5% relative to the index. The worst absolute loss has been 12%.

Periods of worst performance

Absolute -12.00% (September 2018 - December 2018)
Relative -5.00% (July 2014 - January 2016)

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

8.9602% Royal Dutch Shell
5.6503% Hsbc Hldgs
4.6452% Bp
3.9352% Astrazeneca Plc
3.5469% Glaxosmithkline
3.3933% Diageo
2.8734% British American Tobacco
2.2959% Unilever
2.1808% Rio Tinto
1.8695% Prudential Plc
Source: Trustnet

Sector breakdown

Financials 26.00%
Consumer Goods 14.00%
Oil & Gas 14.00%
Consumer Services 12.00%
Industrials 12.00%
Health Care 9.00%
Basic Materials 8.00%
Telecommunications 3.00%
Utilities 2.00%
Technology 1.00%

Portfolio

The fund holds around 600 securities, compared to around 630 in the FTSE All-Share Index. Typically 20-30% in index futures and a similar amount in cash.

Constraints

VP 12.00.

Key Investor Information

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