Posted inHead To Head

HEAD-TO-HEAD: Capital Group versus Fidelity

FSA compares two international equities products: the Capital Group World Growth and Income Fund and the Fidelity World Fund.
by Rupert Walker

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Conclusion

Morningstar has awarded the Capital Group product four stars based on historical returns (including prior to its inception as Ucits), and with a bronze analyst rating. The firm awards the Fidelity fund is top ranking of five stars, and a forward-looking analyst rating of silver for its retail share class.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, has not yet assigned a rating to the Capital Group fund, but awards the Fidelity product three crowns.

“Both funds are really good, and they emanate from top asset management houses,” said Poole.

“The Fidelity product has delivered consistently strong returns, and has coped well in market downturns,” he said.

For investors keen on global equities, then its high allocation to US equities should be beneficial, as the US market is likely to take the lead, he noted.

Yet, the Capital Group fund also has its attractions as a core holding, despite the recent staff turnover, according to Poole.

“It has a well-diversified portfolio, produces solid performance and has low volatility,” he said.

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