Fidelity Funds - Emerging Markets Fund W-Acc-GBP

Emerging Markets

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
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
0.55
3 Year Alpha
2.89
Yield
0 %
Benchmark
MSCI EM NR USD
The fund 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. These regions include emerging markets. The fund may invest its net assets directly in China A and B Shares.
Holding %
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 %
Region %
Asia - Emerging 44.26 %
Asia - Developed 22.06 %
Europe - Emerging 11.34 %
Latin America 9.96 %
Africa 6.94 %
Sector %
Financial Services 34.76 %
Technology 18.41 %
Consumer Cyclical 15.46 %
Consumer Defensive 8.54 %
Communication Services 7.80 %
Industrials 7.66 %
Name
Fidelity (FIL Inv Mgmt (Lux) S.A.)
Address
L-1246, Luxembourg, Luxembourg
UCITS
Yes
Legal Structure
SICAV

Managers

Amit Goel
Joined 12/02/2019
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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