HEAD-TO-HEAD: Capital Group versus Fidelity

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Manager review

The Capital Group fund has been marked by considerable personnel turnover during the past three years. There have been four planned manager departures, and the removal of its principal officer, as well as an analyst group change and the addition of five news.

Most recently, Capital Group said in April that manager Alex Sheynkman will leave the World Growth & Income’s management team to pursue other opportunities. Following his departure, the firm will distribute his portion of assets to the strategy’s remaining eight-person management team from two Capital Group subsidiaries.

Nevertheless, the strategy retains the long-standing managers, Sung Lee, Alfonso Barroso, and David Riley, who have all managed assets for the fund since 2007.

“Although Capital Group has been changing the guard in recent years and bringing in new talent, the unplanned departures of two senior managers is a cause for concern,” said Poole.

“On the other hand, the multimanager approach reduces key-person risk,” he added.

The Fidelity fund, in contrast, has been a rock of stability.

Jeremy Podger became manager in June 2014, and has been running the strategy through its UK-domiciled counterpart, Fidelity Global Special Situations, since March 2012. Podger joined Fidelity from Threadneedle, after a spell at Investec.

“Podger is a very capable manager with a good track record, which is supported by a clear investment philosophy and process,” said Poole.

Jamie Harvey was appointed associate portfolio manager on the Fidelity fund in July 2019, after a year working as analyst on the strategy. He has over 10 years’ experience and focuses primarily on “corporate change” type stocks but may grow to have more responsibility over the entire portfolio.

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