Fidelity Funds - Emerging Markets Fund W-Acc-GBP

Emerging Markets

Rated Fund 2014-16, 2018-19. A ‘best of breed’ portfolio from considerable research

Fidelity Emerging Markets has a strong research-driven process that has seen its Morningstar analyst rating lifted from bronze to silver in 2018. Despite recent poor relative returns, it retains its Rated Fund status given its strong long-term track record.

London-based manager Nick Price has been at the helm of this 20-year-old fund since 2010. In selecting stocks, he is supported by three regional portfolio managers – for emerging Asia; Latin America; and Europe, Middle East and Africa.

They collectively draw upon a team of around 40 emerging markets research analysts, who are located across the globe. The analysts pass the findings of their stock research onto the regional portfolio managers, who then communicate the best ideas to Price. He conducts his own due diligence and challenges analyst assumptions and only after this will investments be added to the fund.

The team focuses on quality growth companies that exhibit superior and sustainable return on assets; strong, unleveraged balance sheets; shareholder friendly management; and reasonable valuations over a full economic cycle. The result is a ‘best of breed’ portfolio that contained 65 holdings at the end of 2018. These are typically large companies given the fund’s significant size of £2.3 billion.

This considerable research effort has produced strong investment returns over time, but over shorter time periods the fund can show some relative weakness due to persistent biases to growth stocks, along with sub-Saharan Africa, where the manager sees structural growth opportunities.

“Fidelity Emerging Markets represents a strong option for investors, and our conviction in its potential has increased,” said Morningstar analyst Simon Dorricott.

Narrative and ratings content all as of January 2019.

See all Money Observer rated funds
Name
Fidelity Funds - Emerging Markets Fund W-Acc-GBP
Manager
Fidelity (FIL Inv Mgmt (Lux) S.A.)
Type
SICAV
ISIN
LU1033662674
Sector
Not Categorised
Launched
11/03/2014
OCF
1.08 %
Risk Rating
4
3 Year Sharpe
0.89
3 Year Alpha
-0.15
Yield
0 %
Benchmark
MSCI EM NR USD
Invests principally in areas experiencing rapid economic growth including countries in Latin America, South East Asia, Africa, Eastern Europe (including Russia) and the Middle East. The fund may invest its net assets directly in China A and B Shares.
Holding %
AIA Group Ltd 7.45 %
Naspers Ltd Class N 6.66 %
HDFC Bank Ltd 5.08 %
Taiwan Semiconductor Manufacturing Co Ltd 3.85 %
Housing Development Finance Corp Ltd 3.62 %
PT Bank Central Asia Tbk 3.33 %
China Mengniu Dairy Co Ltd 3.07 %
Alibaba Group Holding Ltd ADR 2.95 %
Inner Mongolia Yili Industrial Group Co Ltd 2.71 %
Samsung Electronics Co Ltd 2.56 %
Region %
Asia - Emerging 36.30 %
Asia - Developed 23.77 %
Latin America 11.03 %
Africa 10.15 %
Europe - Emerging 9.88 %
Sector %
Financial Services 39.46 %
Technology 23.86 %
Consumer Cyclical 10.25 %
Consumer Defensive 9.28 %
Basic materials 6.94 %
Name
Fidelity (FIL Inv Mgmt (Lux) S.A.)
Address
L-1246, Luxembourg, Luxembourg
UCITS
Yes
Legal Structure
SICAV

Managers

Nick Price
Joined 07/01/2009

Nick Price is Fidelity’s primary Global Emerging Market (GEM) and Emerging EMEA equity portfolio manager. He joined Fidelity in January 1998 as a research analyst before being selected as the assistant portfolio manager for Fidelity’s flagship European Growth Fund in 2004. He launched the team’s first EMEA portfolio in late 2005 and was later appointed to manage Fidelity’s GEM strategies in mid 2009. Before joining Fidelity, Nick worked for a variety of investment banks in London and prior to that, worked as a Senior Auditor for PriceWaterhouse in Johannesburg. Nick holds a Bachelor of Commerce and Diploma in Accounting from the University of Natal, is a Member of the South African Institute of Chartered Accountants and is a CFA Charterholder.

Data provided by Morningstar.

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