Fidelity's Investment Fund Fails to Capitalize on the Surge in Bank Shares Prices

The Fidelity International Growth Fund (FIGFX), managed by investment guru Jed Weiss, has shown impressive growth over the past three, five, and 10 years, outpacing its peers and the MSCI EAFE Growth Index. However, in recent years, the fund has not kept pace with the broader MSCI EAFE Index.

Weiss's strategy for the fund includes a focus on firms with good long-term growth prospects, attractive stock prices, and solid moats around their businesses. This approach has led to an above-average stake in U.K. stocks in recent years, due to their undervalued status.

Some of the British stocks new to the FIGFX portfolio include the London Stock Exchange, RELX (a global provider of information and analytics), and Howden Joinery Group (a supplier of kitchen and joinery products). These companies, along with others, offer various services to builders, including legal databases.

Interestingly, the MSCI EAFE Index, which includes both growth and value stocks, has a significant representation from bank stocks, making up 24% of the index. The FIGFX, on the other hand, owns some financial services stocks but does not rely heavily on the banking sector.

In the midst of a global economic recovery and rising interest rates, some European stocks have shown remarkable growth. French aerospace and defense company Safran has increased by 55% over the past 12 months, while U.K.-based aerospace firm BAE Systems has risen by 60%.

Notably, the German software company SAP has returned 52% over the same period. In response to the April stock selloff, Weiss added to stakes in existing positions and initiated positions in Belgian bank KBC Groupe and German ticketing firm CTS Eventim.

The FIGFX is a member of the Kiplinger 25, a list of the best mutual funds in the US, and continues to be a strong contender in the international investment landscape. Despite the occasional lag in performance compared to the broader index, Weiss's strategic approach to investing remains a key factor in the fund's success.