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
0.65
3 Year Alpha
0.87
Yield
1.4 %
Benchmark
MSCI EM NR USD
The fund aims to increase the value of your investment over a period of 5 years or more by investing at least 70% in equities (and their related securities) of companies (those domiciled, incorporated or having significant business or being listed) in countries experiencing higher levels of economic growth within Africa, the Indian sub-continent, Latin America, East and South East Asia, Central and Eastern Europe(including Russia)and the Middle East. The manager will, when selecting investments for the fund and for the purposes of monitoring risk, consider the MSCI Emerging Markets (Net Total Return) Index. However, the manager has a wide degree of freedom relative to the index and may take larger, or smaller, positions in companies, and/or may invest outside the index, to take advantage of investment opportunities. This means the fund’s investments and therefore performance may vary significantly from the index.
Holding %
Naspers Ltd Class N 8.11 %
AIA Group Ltd 5.75 %
Alibaba Group Holding Ltd ADR 5.49 %
Taiwan Semiconductor Manufacturing Co Ltd 5.00 %
HDFC Bank Ltd 4.68 %
China Mengniu Dairy Co Ltd 4.58 %
Fidelity ILF - USD A Acc 3.86 %
PT Bank Central Asia Tbk 3.68 %
Housing Development Finance Corp Ltd 3.52 %
Sberbank of Russia PJSC 3.46 %
Region %
Asia - Emerging 40.15 %
Asia - Developed 25.33 %
Latin America 9.79 %
Africa 9.20 %
Europe - Emerging 9.03 %
Sector %
Financial Services 34.34 %
Technology 25.48 %
Consumer Cyclical 16.26 %
Consumer Defensive 10.37 %
Industrials 6.50 %
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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