Head To Head

HEAD-TO-HEAD: Fidelity vs Loomis Sayles

FSA compares the Fidelity America Fund and the Loomis Sayles US Growth Equity Fund.

by Francis Nikolai Acosta 7 September 201810 November 2020

Lena Tsymbaluk, Morningstar

Driven by strong economic growth, tax cuts and the technology sector, US equities have become the preferred equity asset class for a growing number of firms, including BMO Global Asset Management, Bank J Safra Sarasin and Blackrock.

Year-to-date the S&P 500 has returned 9.09%, beating the MSCI AC World Index (2.07%) and the MSCI Emerging Market Index (-10.19%), according to data from FE Analytics.

However, other investors may have concerns over the asset class as the rally in US equities has become the longest in US history, Lena Tsymbaluk, London-based analyst for manager research at Morningstar, told FSA.

The asset class has also become more expensive, driven by expensive valuations in growth companies, particularly in the technology sector, she added.

“That’s why we’re not big on US allocations ourselves,” she said, citing views from the firm’s investment management business, which provides asset allocation recommendations and model portfolios to clients.

Against this backdrop, FSA asked Morningstar’s Tsymbaluk to look at two US equity funds, the Fidelity America Fund and the Loomis Sayles US Growth Equity Fund.

	Fidelity	Loomis Sayles
Size	$4.8bn	$1.9bn
Inception	October 1990	June 2016
Manager	Angel Agudo	Aziz Hamzaoguliari
Cumulative return*	18.11%	34.16%
Alpha YTD**	-3.70	-2.62
Volatility YTD**	17.63	17.97
Morningstar analyst rating	Bronze	Silver
Morningstar star rating	****	–
FE Crown fund rating	*	–
OCF	1.05%	1.00%

Source: Morningstar, FE Analytics

*Trailing two years to September 06

**Year-to-date to 06 September

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