Fidelity shuffles managers on investment trust

The board of Fidelity European Values investment trust (FEV) has announced that Sudipto Banerji will become co-manager of the trust in April alongside Tim McCarron.

Banerji, who previously headed the Fidelity Funds Global Industrials Fund from 2005, is being lined up to replace McCarron as sole portfolio manager from the end of June. McCarron will continue to manage the £4.8 billion Fidelity Funds European Fund.

Fidelity says the temporary arrangement is to ensure a smooth transition of the portfolio.

Despite the fund achieving total returns of 159.3% since McCarron took over in 2001 Fidelity says the appointment of a new manager with responsibility over a smaller size of overall assets will be advantageous for FEV.

“The appointment now opens the way for the possibility of diversion between the management style of the two funds,” says Richard Miles, Fidelity director of UK corporate communications.

“Tim has always had a value tilt, aiming for growth at a reasonable price. Sudipto is more interested in end markets and the macro industry climate,” he adds.

Miles says that the structure of a closed-end fund complements Banerji’s style giving him the flexibility to go down the market capitalisation scale to look for value stocks.

Under Banerji’s management the Global Industrials Fund delivered returns of 77.85% against a market benchmark of 59.7%. He joined Fidelity as a research analyst from Invesco Perpetual in 2000.