The Fidelity Growth Company fund has had an exceptional decade. Independent mutual fund rating company Morningstar, which gives it a five-star rating, says it is one of the best-performing funds of the past 10 years. The fund has $45.4 billion in assets under management and invests in domestic and foreign companies that the adviser believes have above-average growth potential. Ranked in the top percentile by Morningstar, Fidelity Growth had a 10-year annual total return of 18.10%, well above the 13.6% average for the “large growth” category. In that period, Fidelity Growth Company saw its highest annual return of 67.7% in 2020. Through 2022, the fund is down nearly 21% through Wednesday. “This underperformance, while disappointing, is mostly in line with what investors should expect from the strategy, given its style, typical exposure to companies with high volatility and an unfavorable macroeconomic context,” he wrote Morningstar strategist Robby Greengold in May. Growth stocks had a rough first half of the year. But the stock market has rallied since its June lows, boosted by investors watching inflation data and the Federal Reserve. Fidelity Growth Company fund manager Steve Wymer is “one of the best” and his strategy has consistently kept the fund ahead of its peers, Greengold said. This performance has earned a Morningstar Gold rating. The Fidelity fund’s top holding is Apple, which made up 11% of the portfolio at the end of June, followed by Nvidia, Microsoft, Amazon and Alphabet. Apple, which has been part of the fund since 2004, is down slightly for the year but has seen gains of 35% since its June 16 low. Nvidia, which represents 6.92% of the portfolio, is down more than 36% for the year, and Microsoft, which represents 6.42% of the fund, has lost nearly 14% so far ‘year. Meanwhile, the two most recent additions to the fund are Growthco AB Holdings LLC, which accounts for 0.32% of the portfolio, and Sysco, which accounts for 0.22%, according to Morningstar. The fund has increased its position in several names since June 30. The holdings that had the biggest stock gains still represented a small portion of the portfolio. The biggest increase came in UnitedHealth shares, with the fund increasing the number of shares it holds by 83%. The health insurer now accounts for 0.53% of the fund’s portfolio. Accenture’s stock count rose 58% and Procter & Gamble’s position grew 44%, each accounting for less than 0.25% of the portfolio. Meanwhile, the fund’s holdings in EOG Resources rose 28.1% and the number of TJX shares rose 8.9%, Morningstar found. Of the top 10 positions held by the fund, only Visa shares rose slightly in the last quarter, up 0.22%. The credit card company represents 1.13% of the portfolio. Fidelity Growth Company’s fee level is above average and has an expense ratio of 0.73%, according to Morningstar.
[ad_2]
Source link
