Fidelity Global Special Situations Fund W Acc

Global Growth

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
Name
Fidelity Global Special Situations Fund W Acc
Manager
Fidelity (FIL Investment SVCS (UK) Ltd)
Type
Open Ended Investment Company
ISIN
GB00B8HT7153
Sector
Global
Launched
15/10/2012
OCF
0.92 %
Risk Rating
4
3 Year Sharpe
1.38
3 Year Alpha
0.70
Yield
0.9 %
Benchmark
MSCI ACWI NR USD
The Fund’s investment objective is to achieve long term capital growth from a portfolio primarily made up of the shares of companies around the world. The Fund will have a blend of investments in larger, medium and smaller sized companies. The ACD is not restricted in its choice of companies either by size or industry, or in terms of the geographical split of the portfolio, and will choose stocks largely determined by the availability of attractive investment opportunities. The Fund may also invest in other transferable securities, units in collective investment schemes, money market instruments, cash and deposits. Derivatives and forward transactions may also be used for investment purposes
Holding %
Fidelity ILF - USD A Acc 3.92 %
Alphabet Inc A 3.03 %
Royal Dutch Shell PLC B 3.01 %
Microsoft CorpCFD 2.77 %
Exelon Corp 2.43 %
JPMorgan Chase & Co 2.21 %
Merck & Co Inc 1.98 %
Airbus SE 1.97 %
HCA Healthcare Inc 1.70 %
Marathon Petroleum Corp 1.60 %
Region %
United States 56.98 %
Eurozone 13.51 %
Japan 7.76 %
Asia - Developed 6.72 %
United Kingdom 5.83 %
Sector %
Financial Services 20.09 %
Technology 15.51 %
Healthcare 15.41 %
Industrials 10.35 %
Consumer Cyclical 10.27 %
Energy 9.72 %
Utilities 5.26 %
Name
Fidelity (FIL Investment SVCS (UK) Ltd)
Address
TN11 9DZ, Hildenborough Kent, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Jeremy Podger
Joined 03/01/2012

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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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.