View more on these topics

Fidelity reopens American Special Sits

Fidelity is reopening the £420m American special situations fund to new business three years after it soft closed the fund.

The fund was launched in 1980 but in 2003 it became too large for then manager Neal Miller’s investment style. Miller had a bias towards growth stocks within the small and mid-cap arena, using top-down themes and bottom-up research.

Fidelity then increased the fund’s initial charge to 5.25 per cent, made it unavailable for online investment and withdrew IFA commission on new business in an attempt to control the fund’s size.

Bob Haber, who took over from Miller in July, has a different style of management and he is likely to look for stocks higher up the market cap scale.

He tends to construct portfolios using a bottom-up approach, with more emphasis on valuation than Miller. He also relies on quantitative methods to identify the best stocks, although he will also take macroeconomic factors into consideration.

Fidelity believes Haber’s style can cope with a greater pool of assets so it has lowered the initial charge to 3.5 per cent and has reinstated adviser commission.

The US market has underperformed over the past few years and stocks have been expensive relative to other markets. Growth is slowing, which could have a negative impact on earnings, particularly small caps. The US consumer and the housing market are also causes for concern but on the plus side, interest rates expected to peak soon and corporate earning remain strong, which could help the types of companies that Haber prefers.

Recommended

Let’s Bee avenue

There are other pension routes apart from the Government’s stark choice

‘Mass move into S2P is Russian roulette’

Providers recommending mass contracting back into S2P are playing Russian roulette with people’s retirement incomes, says Informed Choice managing director Nick Bamford. His attack comes as the industry desperately tries to fend off an FSA review of contracting out, which sources say could cost the industry over 3bn in compensation. Many insurers have again been […]

C&G moves into light adverse but not sub-prime

Cheltenham & Gloucester has moved into the light adverse market but has decided against moving deeper into the sub-prime sector, following an internal review.C&G said in February it was considering a move into the non-conforming and equity release sectors, but while it has not detailed any firm plans regarding self-cert or equity release, it has […]

Moving story

lender profile Guy Anker on the move of established lenders into specialist markets

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment