Fidelity Funds - Emerging Markets Fund W-Acc-GBP
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
|Naspers Ltd Class N||7.67 %|
|AIA Group Ltd||7.39 %|
|HDFC Bank Ltd||5.26 %|
|Taiwan Semiconductor Manufacturing Co Ltd||4.40 %|
|China Mengniu Dairy Co Ltd||4.09 %|
|Alibaba Group Holding Ltd ADR||4.06 %|
|PT Bank Central Asia Tbk||3.52 %|
|Housing Development Finance Corp Ltd||3.46 %|
|Sberbank of Russia PJSC||3.41 %|
|Inner Mongolia Yili Industrial Group Co Ltd||3.31 %|
|Asia - Emerging||37.30 %|
|Asia - Developed||26.34 %|
|Latin America||9.41 %|
|Europe - Emerging||8.92 %|
|Financial Services||38.94 %|
|Consumer Cyclical||12.79 %|
|Consumer Defensive||11.09 %|
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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