Press Release

Moneyspider.com

PRESS RELEASE

FOR IMMEDIATE DISTRIBUTION 
 

28 January 2008 

UK all companies sector set to take a major pounding in markets fall out predicts MONEYSPIDER.COM 

Current market turbulence is set to create havoc with the key UK sector, warns Moneyspider.com (www.moneyspider.com). 

The investment data analyst warns that the multi-million pound sector is likely to be among the worst hit as a result of the global shares crisis.  

Fidelity, one of the UK's most popular managers, has already suffered underperformance in the sector, and now its varied fortunes could be echoed by other big names in one of the most popular market sectors, predicted Moneyspider.com spokesman Tony Ahearne. 

"Fidelity has struggled in this sector, and recently installed new manager Tom Ewing to improve the performance.  

"With around £733 million invested in it, the fund would have turned an investment of £5,000 into £8,426 after five years compared with its sector average of £9,571.* Its five year performance ranks it a disappointing 203rd out of 223 UK Equity funds," ** he said.  

Fidelity UK Growth, a Moneyspider.com D rated fund (see notes for full ratings analysis), is currently ranked 197 out of a sector comprising 215 funds. *** 

Over the past five years, the top-performing UK Growth funds have been Old Mutual UK Select Mid Cap, Invesco Perpetual UK Aggressive, Saracen Growth, Rensburg UK Mid Cap Growth and Standard Life UK Opportunities.  

"Inherent difficulties forecast across many key UK sectors such as retail, banking and commercial property could seriously impede performance in the UK All Companies Sector, which has hitherto been a robust performer," added Ahearne. 

But Ahearne pointed out that while investors with Fidelity Growth are likely to be disappointed, it is not all bad news for Fidelity investors - funds like the Fidelity Moneybuilder Growth Fund and the Fidelity Special Situations Fund have produced stellar returns over recent years, while others have also outperformed their benchmarks. 

"Fidelity has acknowledged that its UK Growth is a long-term under-performer but it is important to remember that three of its funds - European, Special Situations and Global Situations carry a Moneyspider.com A rating," he said. 

"Investors may prefer to have some exposure to smaller, more nimble funds, which can often deliver impressive returns, especially in difficult market conditions such as we are currently experiencing.  

"And more adventurous investors may also wish to consider some of the more esoteric and high risk/high reward funds from some of the small 'boutique' fund managers. 

"The core Moneyspider.com philosophy is to choose the right fund manager but give equal credence as to whether you are in the right fund. 

"With a large manager such as Fidelity, while undeniably going through a bad spell with the UK Growth, it could well turn the performance round over the next few years and once again regain the top performance slots," he added. 

Moneyspider.com has no registration fee and the service not only rates the performance of the client's own funds but also shows a comparison with the top five funds in the same sectors - so Moneyspider.com investors can see where the real profits have been. 

The service, designed to appeal to the 'Joe Average' investor,  is a comprehensive yet easy-to-understand fund monitoring tool delivering personalised reports, including valuations and ratings on each investor's individual fund, all updated on a daily basis.  

Further details on the mechanics of Moneyspider.com can be found at www.moneyspider.com. 

* Source: Moneyspider/ Financial Express 14.01.08, Fidelity's UK Growth Funds increases by 68.52 per cent after five years compared to the UK All Companies sector average 94.42 per cent. 

** Source: Moneyspider.com, January 2008 

*** Source: Moneyspider.com, Financial Express 14.01.08 

- ENDS - 

Editor's notes

Moneyspider was launched in April 2004 and is a totally independent investment research and information company for private investors. Moneyspider constantly monitors all 2,000 or so funds available to UK investors and provides online personal reports that are updated on a daily basis showing current valuation and performance of all funds in one place.

The Moneyspider Rating® provides a unique assessment of the performance of each fund measured against four key parameters:

• Sector ranking: a comparison with all other funds in the same sector as your fund (based on the sector definitions used by the Investment Management Association).
  
• All funds ranking: a comparison with all other 2000 or so Unit Trusts and Open Ended Investment Company funds available to UK investors.
  
• FTSE 100: a comparison of the total return of the fund with the total return of the FTSE 100 index (comprising the UK's 100 largest companies), providing a consistent benchmark for each fund.
  
• Cash: a comparison of the fund's performance with the return from an equivalent amount deposited in a 90 day non-high interest access account.

Moneyspider is an appointed representative of Anthony, Bryant & Company (Investment Consultants) Limited of 25 Eccleston Square, London SW1V 1NS, which is authorised and regulated by the Financial Services Authority. The contents of this press release are not intended, and should not be construed as, advice, a recommendation or as an inducement to buy or sell any investment. Moneyspider relies on information regarding investments that is provided by third parties and accepts no liability (including that arising from negligence) for the accuracy of such information.