Fidelity shuffles staff on two funds

Fidelity has appointed new managers for its £752m UK Growth and £271m UK Aggressive funds. Tom Ewing (pictured), an analyst at Fidelity for seven years, has replaced Carlos Moreno as manager of the Fidelity UK Growth fund. Aruna Karunathilake, also an analyst at the group for the past seven years, will replace Mark Hodges as manager of the Fidelity UK Aggressive fund.

Moreno managed the UK Growth fund, launched in 1985, for two years until last week. Hodges had managed the UK Aggressive fund, launched in 1987, since August 2005. They will now focus on their other mandates, which include institutional funds and Moreno’s Sicav.

Fidelity says the changes are being made because the investment styles of Ewing and Karunathilake are more appropriate for the funds’ mandates. Ewing has a growthorientated style that looks at global trends and works with more concentrated portfolios. He is expected to cut the number of holdings in the UK Growth fund from 70 to 50 and move up the capitalisation scale.

Peter Hicks, head of IFA channel at Fidelity, says: “It alters the risk slightly. [But] he’ll probably have a very similar tracking error.”

Karunathilake is also expected to reduce the number of holdings in the UK Aggressive fund, from 90 to 50. However, his tracking error is expected to increase.

Performance of the UK Aggressive and UK Growth funds has been below average for the past few years. Over two years to December 3, the Aggressive fund is third quartile, while the Growth fund is fourth quartile, according to Morningstar.

Over five years the Aggressive fund is first quartile, while the Growth fund is fourth quartile.