Fidelity Australian Equities Fund

Fidelity Australian Equities Fund
Fund fact sheet Invest now

About this fund

A core holding which invests in a diversified selection of around 30 - 50 Australian companies.

Uses a bottom-up stock-selection approach that focuses on undiscovered earnings potential, value and growth.

Conducts regular company, factory and competitor visits to assess business strength, earnings quality and long-term growth outlook.

Why this fund

The same highly experienced portfolio manager since 2003, backed by a highly experienced team.

A diversified portfolio with a consistent, rigorous investment approach.

Strong fund ratings from professional research houses.

Meet Paul Taylor

Portfolio Manager of the Fidelity Australian Equities Fund, Paul Taylor describes his love of markets, investments and his overarching goal to provide strong long-term returns to clients to help meet their investment goals.

Key facts

Unit prices (at 05/12/24)
Buy 38.1884 / Sell 38.074
Unit price history
Buy/sell spread
0.15%/0.15%

At a glance

Objective
To achieve returns in excess of the S&P/ASX 200 Accumulation Index over the medium to long term.
Benchmark
S&P/ASX 200 Accumulation Index
Management costs1
0.85% p.a.
Fund size (at 05/12/24)
A$4,777.93M
Inception date
30 June 2003
Distribution frequency
Quarterly
Currency
Australian dollar

Unique identifiers

APIR code
FID0008AU
ARSN code
103420088
mFund code
FIL08

Fund manager

Paul Taylor
Australia

Latest fund update

Yes, the Fund performed very well in the quarter. We're extremely happy. The fund itself delivered 8.85%, a return for the quarter, which is obviously a great absolute return but also beat the index by over 1.1%. So 1.06, it outperformed the index.

A lot of the main stocks in the fund performed very well through the quarter as well. The interesting thing with the September quarter is that we had the August reporting season in the middle of that quarter. Some of our bigger positions in the fund like Wisetech had a 30% earnings upgrade. Suncorp, which is the largest position in the fund, is also performing well. And the simplification program of Suncorp, as well as the earnings, continue to be heading in the right direction. Coles also had a great result and were able to lower costs, in the August reporting season as well. And some of our positions in companies like Domino's and Seek also performed very well. And we're seeing a turnaround in those stocks. 

What we're also really excited about is that the fund, looks like it's turned a bit of a corner from February. So from 1st February to now, so most of 2024, we're now outperforming the index. And I think the market is moving back towards very individual stock specifics, individual stock fundamentals. 

In terms of detractors,  probably the one notable one at the moment is Ramsay Healthcare. Now Ramsay is a private hospital operator. The result in August is just, they're turning the business around but it's very slow. So I'd say the recovery is much slower than expected. The stock seems to be stabilising and moving forward in the quarter. But I still think it's quite a long, slow recovery for private hospitals in Australia.

Look, I think the outlook for the markets remains reasonable. So we've had very strong performance in the fund and in the market over the last year. So we're up almost about 20% in the last 12 months. So that's been a quite a strong performance. And it's always hard to keep that strength going for a long period of time. But I still think we are in reasonable shape.

The market looks a little bit expensive but not drastically expensive. I think we're improving. We've got, interest rates seem to be peaking out. So we probably stay here for another 12 months or so but maybe the next move is down rather than up. Once again that brings stability to the market.

What we are very focused on with the market and the fund in particular and how we're positioned is really productivity. So we still think cost growth is a bit of an issue in the market. Companies are struggling to get the costs right. We're still seeing wage inflation.
We're still seeing some inflation in non wage issues as well. Those companies that have self-help programs, and that's what I'm very focused on in the fund, those companies with self-help programs, the Suncorps, the Coles, the Downers, we think they're much better positioned. Companies that can control their own destiny are going to be much better positioned. Companies that have better productivity growth are going to do better. Companies that help other companies with productivity growth are very well positioned as well.

So I think productivity is a bit of a thematic right across the portfolio and those companies that can control their costs, that can improve their productivity, I think they're going to be very well positioned. And we still look to a favourable market outlook for those companies.

Q3 delivered a positive return for the Fidelity Australian Equities Fund.

Watch as Portfolio Manager Paul Taylor provides an update on the main contributors and detractors to performance and why he believes companies with self-help programs are the ones to watch moving ahead.

Performance2

See for yourself how the fund has performed since inception. The chart below represents the value now of $10,000 invested in the Fidelity Australian Equities Fund in June 2003 compared with $10,000 invested in the S&P/ ASX 200 Accumulation Index.

Chart as at: 30 November 2024

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: S&P ASX 200 Accumulation Index.

Net returns as at 30 November 2024

Timeframe 1 yr
%
3 yr
% pa
5 yr
% pa
7 yr
% pa
10 yr
% pa
15 yr
% pa
20 yr
% pa
Since inception
(30/06/03) % pa
Fund 19.93 5.87 7.77 8.72 8.62 8.91 9.96 11.09
Benchmark 23.42 9.55 8.28 9.24 9.08 8.42 8.38 9.44
Active return -3.49 -3.68 -0.51 -0.52 -0.46 0.49 1.58 1.65

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: S&P ASX 200 Accumulation Index.

Net as at 30 November 2024

1 yr
%
3 yr
% pa
5 yr
% pa
7 yr
% pa
10 yr
% pa
15 yr
% pa
20 yr
% pa
Since inception
(30/06/03) % pa
Total return 19.93 5.87 7.77 8.72 8.62 8.91 9.96 11.09
Growth 10.95 -2.16 0.53 2.55 3.31 4.20 5.13 6.26
Income 8.98 8.03 7.23 6.18 5.31 4.71 4.83 4.83

Growth return is the unit price movement on exit to exit basis. Income is expressed as Total Return less growth component.

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: S&P ASX 200 Accumulation Index.

DistributionDistribution (CPU)Reinvestment price
30-Sep-243.5438$37.6777

CPU = cents per unit. The above cash CPU excludes imputation credits and foreign income tax offsets which are non-cash components and are reported in the end of year tax statement. If the Distribution CPU column is 0.0000 it means that nothing was distributed. 

Sectors and holdings

As at 31 October 2024

As at 31 October 2024

% total net assets
COMMONWEALTH BANK AUSTRALIA 12.1%
BHP GROUP LTD 9.8%
SUNCORP GROUP LTD 6.1%
CSL LTD 6.0%
MACQUARIE GROUP LTD 6.0%
COLES GROUP LTD 5.6%
GOODMAN GROUP 5.3%
SEEK LTD 4.7%
RIO TINTO LTD 4.4%
WESTPAC BANKING CORP 4.2%

As at 31 October 2024

Fund % Benchmark % Relative %
SUNCORP GROUP LTD 6.1 0.9 5.1
COLES GROUP LTD 5.6 1.0 4.6
SEEK LTD 4.7 0.4 4.3
EVOLUTION MINING LTD 4.1 0.4 3.6
GOODMAN GROUP 5.3 2.6 2.7

As at 31 October 2024

Fund % Benchmark % Relative %
NATIONAL AUSTRALIA BANK LTD 0.0 4.9 -4.9
WESFARMERS LTD 0.0 3.1 -3.1
TELSTRA GROUP LTD 0.0 1.8 -1.8
TRANSURBAN GROUP 0.0 1.6 -1.6
ARISTOCRAT LEISURE LTD 0.0 1.6 -1.6

Fund ratings3

Organisation Rating / Recommendation
Lonsec
Recommended4
The Lonsec report is only available to financial advisers, please contact us for a copy
Morningstar Gold5
Zenith Recommended6

This Fund is subject to the risk of stock market fluctuations. Investors accessing the Fund through a master trust or wrap account will also bear any fees charged by the operator of such master trust or wrap account. Any apparent discrepancies in the numbers are due to rounding.

1Management costs and buy/sell spread are current as at the date of publication of this website. These fees may be subject to change in the future.

2Total returns (net) have been calculated using exit prices and take into account the applicable buy/sell spread and are net of Fidelity’s management costs, transactional and operational costs and assumes reinvestment of distributions. No allowance has been made for tax. Returns of more than one year are annualised. The return of capital is not guaranteed. 

3You should refer to respective research houses (and their disclaimers below) to obtain further information about the meaning of the rating and the rating scale. Ratings are only one factor to be taken into account when deciding whether to invest. Ratings are subject to change without notice and may not be regularly updated. Ratings are current as at date (s) stated below. Fidelity pays a fee to some research houses for rating our funds.

4The Lonsec Rating (assigned October 2024) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Fidelity International product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

5© 2024 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). Rating assigned 21 November 2024.

6The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2024) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines

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