Fidelity Funds - Emerging Markets Fund W-Acc-GBP
Rated Fund 2014-16, 2018-20. A ‘best of breed’ portfolio based on extensive research
Fidelity Emerging Markets has an experienced management team, deep analytical resources and a robust investment approach that earns it a silver Morningstar analyst rating.
London-based Nick Price has been at the helm of the fund since 2010. Amit Goel, a key contributor to this strategy since 2014, was promoted to co-manager near the end of 2019. Ideas also come from regional portfolio managers for Latin America, Europe, the Middle East and Africa.
The managers collectively draw on the findings a team of 45 emerging market research analysts around the world. The analysts pass their stock research findings on to regional portfolio managers, who in turn pass on the best ideas to the fund’s managers.
The managers conduct their own due diligence and challenge analyst assumptions. Only then will investments be added to the fund.
The focus is on quality growth companies with superior and sustainable returns 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 53 holdings at the end of 2019. Typically, these are large companies, given the fund’s significant size of £2.4 billion.
The thorough research effort has produced strong long-term investment returns, but the fund can lag over short periods because of its consistent growth bias. In 2016, for example, when value stocks outperformed growth stocks, it produced dismal results.
Morningstar analyst Andrew Daniels says: “All told, despite middling fees, this remains a strong offering for global emerging market equity exposure.”
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Alibaba Group Holding Ltd ADR||7.03 %|
|Naspers Ltd Class N||6.19 %|
|Taiwan Semiconductor Manufacturing Co Ltd||5.88 %|
|AIA Group Ltd||4.94 %|
|HDFC Bank Ltd||4.42 %|
|Samsung Electronics Co Ltd||3.59 %|
|China Mengniu Dairy Co Ltd||3.55 %|
|Housing Development Finance Corp Ltd||3.28 %|
|Sberbank of Russia PJSC||3.26 %|
|SK Hynix Inc||3.25 %|
|Asia - Emerging||44.26 %|
|Asia - Developed||22.06 %|
|Europe - Emerging||11.34 %|
|Latin America||9.96 %|
|Financial Services||34.76 %|
|Consumer Cyclical||15.46 %|
|Consumer Defensive||8.54 %|
|Communication Services||7.80 %|
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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