Attribution Analysis of US Mutual Funds through November 2015
The Fidelity Blue Chip Growth Fund
According to the fund’s management, the Fidelity Blue Chip Growth Fund (FBGRX) invests “at least 80% of assets in blue chip companies (companies whose stock is included in the S&P 500 or the Dow Jones Industrial Average, and companies with market capitalizations of at least $1 billion if not included in either index).” The fund manager also invests in companies that are believed to have above-average growth potential.
The fund manager makes use of fundamental analysis, which includes factors like the financial condition and industry position of each issuer. The manager also looks at economic and market conditions while selecting securities for the portfolio.
The Fidelity Blue Chip Growth Fund’s assets were invested in 391 holdings comprising stocks and cash as of October 2015, which is the latest available portfolio. The fund was managing $20.99 billion in assets as of the end of November.
As of the October portfolio, FBGRX’s equity holdings included Gilead Sciences (GILD), Salesforce.com (CRM), Visa (V), MasterCard (MA), and Analog Devices (ADI), comprising a combined 8.3% of the fund’s portfolio.
Historical portfolios
In this analysis, we will consider holdings as of October 2015, which provides the latest available sectoral breakdown. After October, the fund’s holdings reflect the valuation-driven changes to the portfolio, not the actual holdings.
Of the ten sectors, the FBGRX is invested in all but the utilities sector, which it exited after July 2015. The information technology and consumer discretionary sectors form the core of the fund’s portfolio, accounting for a combined 62% of the fund’s assets. Healthcare is a distant third, forming slightly less than 17% of the portfolio.
Since November 2014, the fund’s exposure to the consumer discretionary and information technology sectors has increased. On the other hand, industrials and materials currently have a significantly reduced space compared to a year ago. With the exception of a few stocks that have consistently featured in certain sectors, there is a high rate of churn.
How has FBGRX’s composition impacted its performance for the YTD period ended in November 2015, and what can it be attributed to? Let’s look at that in the next article.
Browse this series on Market Realist: