Fidelity Global Enhanced Income Fund W GBP Acc

Global Equity Income

New for 2019. Accelerates income

Fidelity Global Enhanced Income has been added to our line-up for 2019 for investors seeking a stable and higher than average income from stocks globally.

It is sister fund to Fidelity Global Dividend, a Rated Fund since 2015. The two funds have the same number of holdings and are virtually identical with one key difference – the Enhanced Income fund uses derivatives to accelerate its income generation.

Dan Roberts has run both portfolios since their inception, this fund being launched in October 2013, while David Jehan adds a derivatives overlay via covered call options to the Enhanced fund to give the income a boost.

At the end of 2018, the portfolio owned 46 stocks and had call options on 39 of them. This means the managers give up some of the potential capital growth from the shares in exchange for higher income. The fund has underperformed its sister by a small margin over five years, but has historically yielded almost 1% more at 3.6%. The current yield is 5%.

Roberts invests in transparent and sustainable businesses from anywhere around the globe. He will avoid some countries or sectors altogether if he doesn’t think the right opportunities can be found there.

Companies have to offer a ‘margin of safety’ for him to consider them for inclusion in the portfolio. The value influence in his process means he is less likely to overpay for a stock, which can help to protect against price falls in down markets.

FundCalibre, the fund ratings and research provider, rates Roberts “very highly”. “We like the fact that Dan challenges his analysts and allows for intellectual debate,” says managing director Darius McDermott.

Narrative and ratings content all as of 1 January 2019.

See all Money Observer rated funds
Name
Fidelity Global Enhanced Income Fund W GBP Acc
Manager
Fidelity (FIL Investment SVCS (UK) Ltd)
Type
Open Ended Investment Company
ISIN
GB00BD1NLL62
Sector
Global Equity Income
Launched
02/10/2013
OCF
0.94 %
Risk Rating
1
3 Year Sharpe
1.22
3 Year Alpha
1.76
Yield
3.4 %
Benchmark
MSCI ACWI NR USD
The Fund’s investment objective is to achieve income with the potential for some capital growth from a portfolio made up mainly of the securities of companies from around the world. Derivatives and forward transactions may be used for investment purposes and this may include using derivative instruments to generate additional income, for example, by the writing of call options. The Fund may also invest in other transferable securities, units in collective investment schemes, money market instruments, cash and deposits.
Holding %
Deutsche Boerse AG 4.03 %
Roche Holding AG Dividend Right Cert. 3.76 %
Royal Dutch Shell PLC Class A 3.71 %
Fidelity ILF - USD A Acc 3.62 %
US Bancorp 3.60 %
Pfizer Inc 3.48 %
Unilever PLC 3.33 %
Procter & Gamble Co 3.14 %
Wolters Kluwer NV 3.14 %
Informa PLC 3.10 %
Region %
United States 32.85 %
Eurozone 22.23 %
United Kingdom 20.64 %
Japan 9.47 %
Europe - ex Euro 7.13 %
Sector %
Financial Services 21.86 %
Healthcare 16.23 %
Technology 14.03 %
Consumer Defensive 13.02 %
Consumer Cyclical 11.41 %
Industrials 6.20 %
Utilities 6.10 %
Communication Services 5.49 %
Name
Fidelity (FIL Investment SVCS (UK) Ltd)
Address
TN11 9DZ, Hildenborough, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Dan Roberts
Joined 10/02/2013

Dan C. Roberts is an Executive Managing Director, Head of the Global Fixed Income Group and its Chief Investment Officer. His responsibilities include spearheading macro-economic research, managing portfolios that utilize asset allocation and chairing GFI’s Investment Policy Committee (IPC). Directing the IPC is Dan’s most important investment responsibility as this Committee is the foundation of the GFI team-based approach to managing portfolios. It sets all portfolio strategy within the context of the team’s macro view and monitors compliance with its decisions. No significant positions are taken in any portfolio without the approval of the IPC. The IPC’s voting members are GFI’s four most senior investment professionals, who have worked together for nearly two decades. Dan joined MacKay Shields in 2004 when the firm acquired the fixed income business of Pareto Partners, where he had served as Chief Investment Officer. Dan first began assembling his team in 1989, when he was appointed head of fixed income at UBS Asset Management. In 1997 the team joined Forstmann-Leff International and was subsequently purchased by Pareto Partners in 2000. Prior to UBS, Dan worked at Chase Manhattan Bank, initially as a Financial Economist before being named head of Global Interest Rate and Currency Swaps Trading. Before joining the private sector, Dan served at The White House with the President’s Council of Economic Advisors from 1981 to 1983, was the Chief of Staff of the U.S. Congress’ Joint Economic Committee from 1984 to 1985 and was an economist at the U.S. Securities and Exchange Commission from 1977 to 1978. Dan holds a BBA and a PhD from University of Iowa. He has been working in the investment industry since 1977.

Data provided by Morningstar.

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