Fidelity American fund manager Kaye departs

Peter Kaye has left Fidelity, stepping down from the Fidelity American fund he was brought onboard to turnaround two years ago.

Kaye will leave the company “by mutual consent” on September 1, after he has finished a transition period. He is passing the reigns of the fund to Aditya Khowala, who already runs the American Growth SICAV.

Kaye was brought in from Dalton Strategic Partnership to turn around the ailing American fund in 2013. The fund, which is now £930.34m in assets, has underperformed the sector average over most time periods.

In the short term, it has returned 2.54 per cent over the past six months, compared to 2.35 per cent for the North America sector average, FE data shows. However, over one, three, five and 10 years it has underperformed.

Over three years the fund returned 52.86 per cent compared to the sector average of 58.83 per cent, while over one year it returned 16.94 per cent, just under the sector average of 17.21 per cent.

However, Morningstar has maintained its neutral rating on the fund after the manager change. “Khowala currently manages the Fidelity American Growth Fund, which is Neutral rated, and he intends to manage this fund using the same investment approach,” says Simon Dorricott, senior manager research analyst at Morningstar.

“After a period of transition it is expected that the portfolios of these two funds will be close to identical.”

Khowala started at Fidelity in 2006 as an analyst and has run the American Growth SICAV since December 2012. He also runs the Fast US fund, since June 2014.

Over the past year, Fidelity has seen its US assets under management grow from $13.3bn to $16.6bn.