Fidelity Investments announces a change to its portfolio managers for the Fidelity European Equity fund. These changes will take effect on September 1, 2024.
Sam Morse and Aruna Karunathilake will now co-manage the Fidelity European Equity fund, replacing Matthew Siddle and Helen Powell.
Please note that no action is required by advisors or clients as a result of today's announcement.
New portfolio managers
Sam Morse
Aruna Karunathilake
|
With over 35 years' experience in the industry, Sam specializes in non-UK European strategies. He has managed the Fidelity Investment Funds European Fund since 2009, a fund that has been in the top quartile in its category since he took over the mandate. |
Aruna has over 25 years' industry experience and specializes in UK equities. He has managed the Fidelity Investment Funds UK Select Fund since 2013, which has outperformed its index over several periods. |
Frequently asked questions
- What is the expected dynamic between the two new managers?
Sam and Aruna have cultivated a close working relationship through years of joint membership of the wider Fidelity International European equity team. Given their individual areas of expertise, Aruna will complement Sam’s European coverage with a greater contribution on UK holdings within the portfolio. They will work closely together to build a pan-European portfolio that reflects the team's philosophy and meets its investment criteria.
- Should we expect any changes in investment constraints and guidelines?
There will be no major impact on investment constraints and guidelines.
Here's a comparison chart:
|
50 to 80 |
50 to 100 |
|
Typically +/- 5%, with certain sectors potentially having wider deviations |
Typically +/- 5 % |
|
In general, geographic and sector allocation depends on the selection of individual stocks (bottom-up selection). |
|
- What is the estimated tax impact resulting from the upcoming portfolio changes?
Based on the strategies Sam and Aruna are currently managing, we can expect them to keep a portion of the portfolio intact. However, some positions will be sold and could create capital gains.
The final tax impact will depend on a number of variables, including the taxable positions of the securities sold. For this reason, the tax impact cannot be known before the transition.
Tax impacts, if any, will be reflected in the tax slips (T3 federal and Relevé 16 Quebec) issued for the 2024 tax year.
Note : The Know Your Funds brochure will be updated in the fall.
To find out more about these changes, or for any other questions, please refer to your sales teams.
