Fidelity Institutional Emerging Markets Fund W Acc

Emerging Markets

Rated Fund 2014-16, 2018. A 'best of breed' portfolio from considerable research effort

Fidelity Emerging Markets employs an approach that makes full use of the group's resources, which include one of the largest analyst teams in the sector. 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 Latin America, the emerging Europe, Middle East and Africa (EMEA) region, and emerging Asia.

They collectively draw upon a team of more than 45 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 containing 70 holdings at the end of 2017, typically large companies given the fund's significant size of £2.3 billion.

This research effort has produced strong investment returns, but over short-term periods the fund can exhibit relative weakness due to biases to growth stocks, South Africa and sub-Saharan Africa. Jonathan Miller, director for manager research ratings at Morningstar, says: '2016 was a difficult year for the fund, reflecting some style-related headwinds, but the manager returned to form in 2017 as these abated.'

Narrative and ratings content all as of 01 January 2018.

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Name
Fidelity Institutional Emerging Markets Fund W Acc
Manager
FIL Investment Services (UK) Ltd
Type
Open Ended Investment Company
ISIN
GB00B9SMK778
Sector
Global Emerging Markets
Launched
13/05/2013
OCF
0.96 %
Risk Rating
4
3 Year Sharpe
0.85
3 Year Alpha
0.09
Yield
1.4 %
Benchmark
MSCI EM NR USD
The Fund’s investment objective is to achieve long term capital appreciation. The Fund will invest primarily in securities of countries experiencing rapid economic growth including, without limitation, Africa, the Indian sub-continent, Latin America, South East Asia, Europe and the Middle East. There is no policy to restrict investment to particular economic sectors.
Holding %
Naspers Ltd Class N 7.54 %
AIA Group Ltd 7.44 %
HDFC Bank Ltd 5.28 %
Taiwan Semiconductor Manufacturing Co Ltd 4.26 %
Fidelity ILF - USD A Acc 4.14 %
Alibaba Group Holding Ltd ADR 4.05 %
China Mengniu Dairy Co Ltd 4.01 %
Sberbank of Russia PJSC 3.63 %
Housing Development Finance Corp Ltd 3.45 %
PT Bank Central Asia Tbk 3.43 %
Region %
Asia - Emerging 35.77 %
Asia - Developed 25.78 %
Africa 10.02 %
Latin America 9.69 %
Europe - Emerging 9.55 %
Sector %
Financial Services 39.75 %
Technology 22.53 %
Consumer Cyclical 12.82 %
Consumer Defensive 10.02 %
Industrials 6.28 %
Name
FIL Investment Services (UK) Ltd
Address
TN11 9DZ, Hildenborough, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Nick Price
Joined 03/22/2010

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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