Fidelity Global Special Situations Fund W Acc
Rated Fund 2016-19. Trail-blazes new fee structure
This is one of five UK-domiciled Fidelity funds that last year started trialling a new fee system whereby investors pay less when the fund fails to deliver.
Its annual management charge fell to 0.65% from 0.75% and a sliding performance fee was introduced. This is capped so that the total charge will never be more than 0.85% if the fund outperforms, or 0.45% should it underperform.
Jeremy Podger, the fund’s manager since 2012, divides the portfolio into three categories of ‘special situations’. The first is ‘corporate change’, where companies are undergoing substantial structural change and offer the potential for a fundamental increase in value, usually in the form of a merger and acquisition or spin-off activity.
The second is ‘exceptional value’, normally the largest category, which relates to companies Podger believes can deliver at least 50% increases in share price over three years. This could come either from the ability of the company to deliver structural growth, such as revenue gains or improved margins, or a valuation re-rating as this growth is delivered.
The final category is ‘exceptional businesses’ that dominate their respective niches and enjoy a sustainable advantage over their competitors.
Podger does not stick to a rigid investment style. Instead, by combining different types of businesses, he aims to limit the fund’s overall sensitivity to the economic cycle and achieve outperformance across a wide range of market conditions.
He actively seeks to minimise risk through diversification and the use of derivatives. At the end of 2018 the fund had 119 ‘long’ positions and 16 ‘short’, which allow investors to profit from a fall in share prices.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Fidelity ILF - USD A Acc||3.62 %|
|Alphabet Inc A||3.06 %|
|Royal Dutch Shell PLC B||3.02 %|
|Microsoft CorpCFD||2.95 %|
|Exelon Corp||2.34 %|
|Airbus SE||2.24 %|
|Merck & Co Inc||1.98 %|
|JPMorgan Chase & Co||1.87 %|
|Apple Inc||1.78 %|
|Vinci SA||1.70 %|
|United States||56.28 %|
|United Kingdom||6.11 %|
|Asia - Developed||5.83 %|
|Financial Services||19.71 %|
|Consumer Cyclical||10.63 %|
|Communication Services||5.27 %|
Jeremy joined Fidelity in February 2012 and manages the Fidelity Global Special Situations Fund. He has been managing global funds since 1990. He joined from Threadneedle where he was Head of Global Equities and managed the Global Select Fund since 2003 and during his tenure managed a number of other retail and institutional funds including Global Extended Alpha Funds. Prior to that, Jeremy was a fund manager at Investec for 7 years and managed the Global Free Enterprise and Global Strategic Value Funds, which had similar objectives to those of Global Special Situations.
Data provided by Morningstar.
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