The Fidelity Australian Equities Fund was added to Planning Partners recommended list following the designation of an AA rating by our preferred Research House, Van Eyk.

Fidelity is a growth biased Australian equities manager employing a clear and coherent investment philosophy. Fidelity focuses on in–house fundamental research, encompassing regular meetings with companies, to generate stock specific insights and identify favoured stocks. Fidelity aims to add at least 2% to the S&P/ASX 200 over a full market cycle with this index aware strategy.

This strategy is run by a relatively large and well supported investment team. The stability of the Sydney based team is high, with no departures and no offshore rotations since inception. It has met all performance objectives and been well remunerated for doing so. The portfolio manager is Paul Taylor. By a range of key measures his tenure in this role can be considered successful. The manager’s performance has been consistently strong since 2003.

Source: Van Eyk Core Australian Equities Review (May 2008)

The returns for the Fund in the 12 months to 31 December 2008 is negative -35.75%, as compared to the benchmark index for Australian equities of negative 38.44%. This outperformance was largely due to exposure to Energy and Consumer Discretionary stocks. It is important to note that the 5 year return of the fund is 11.58% (annualised) against a benchmark of 6.89%.

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