According to a spokesperson for the group, Kaye is leaving the firm by mutual consent “following a period of transition”.
Khowala joined the firm as an analyst in 2006 and has been running the firm’s American Growth SICAV since 2012. It is expected that he will bring the same investment style to the onshore vehicle.
Since 2014, he has also run the FAST US Fund.
“In making these changes, we have been able to draw upon one of the largest and best-resourced buy-side US equity teams outside the US – composed of 4 dedicated portfolio managers supported by 17 analysts,” a Fidelity spokesperson said, before reiterating that the firm’s US business remains a key area of focus for the group.
Despite the change of manager, Morningstar has maintained its neutral rating on the fund, as it already has a neutral rating on Khowala’s offshore fund.
Simon Dorricott, senior manager research analyst at Morningstar said Khowala’s approach looks to identify long-term secular growth trends, and within these, aims to highlight areas of pricing power and ultimately stocks with strong competitive positions and free cash flow generation.
“After a period of transition it is expected that the portfolios of these two funds will be close to identical.”
Kaye took over management of the fund on 1 February 2013. Over three years it has produced a 46.9% return, compared to the sector’s 53% return, according to data from FE Analytics.
