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Launched on 30 January 2012, this fund aims to achieve income and long-term capital growth from a portfolio consisting primarily of the shares of companies from around the world. The manager will choose around 50 stocks, with a focus on quality large-cap companies paying sustainable dividends. The fund will aim to grow income at least as fast as inflation whilst achieving a yield above that of the index.
|Sector||Global Equity Income|
|Dividends paid||31 Jan, 30 Apr, 31 Jul, 30 Oct|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.75%|
|Ongoing charges figure||0.92%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
Manager Daniel Roberts has accumulated a decent track record in the Global Equity Income sector having been running the fund since launch in January 2012. He also manages Fidelity Global Enhanced Income which uses call option strategies to achieve a higher yield. Both funds pursue a similar investment approach – an emphasis on dividend sustainability and whether the share price provides an adequate margin of safety. This is a more defensive option in the global equity income sector, with the fund displaying relatively low volatility and drawdowns compared to the peer group.
|High yield bonds||0|
The manager’s approach is primarily bottom-up, looking at each individual holding in the portfolio and making a judgement call on dividend sustainability given balance sheet strength. The fund is managed in a conservative manner with an emphasis on limiting potential downside risk by selecting companies with strong fundamentals, sustainable earnings growth and those trading on attractive valuations which provide a sufficient margin of safety. The focus is primarily on larger stocks – those with the market cap / free float of $1bn+. The manager is benchmark agnostic (individual sector weights can go up to 25%, whilst regional allocation can be +/- 25% on a relative basis; the fund’s active share is typically > 90%). The manager is looking to strike a balance between delivering a headline yield and growing distribution per unit.
|Fund data updated on||21/06/19|
|High yield bonds||0|
As at: 30/04/2019
3.9% Deutsche Borse Ag
3.7% Royal Dutch Shell
3.7% Us Bancorp Delaware
3.6% Roche Hldg Ag
3.5% Procter & Gamble Co
3.5% Wolters-Kluwer Nv
3.3% Taiwan Semiconductor Manufacturing
3.2% Colgate-Palmolive Co
3.1% Munchener Ruckversicherungs Ag
Typically around 50- 60 stocks. Multiple sources of alpha, including core, value and 'bond like equities'
+/- 25% in any region. Maximum 25% in any sector. No tracking error targets.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|14/15||15/16||16/17||17/18||18/19||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Roberts joined Fidelity in November 2011. He previously worked as a portfolio manager at Gartmore from July 2009 until the company was acquired and restructured by Henderson. Prior to that he managed equity income portfolios at Aviva for six years from July 2003. Before Aviva he worked as a UK equity manager at Invesco and as an equity analyst at M&G. He also worked in risk analysis at JP Morgan and trained as a chartered accountant at PricewaterhouseCoopers. He holds a BSc (Hons) in mathematics from Warwick University, is an associate of the UKSIP Investment Management Certificate and is a CFA charterholder. Roberts is also a member of the Institute of Chartered Accountants.
Daniel Roberts has 5.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.23%. During the worst period of relative performance (from February 2009 - December 2009) there was a decline of 6% relative to the index. The worst absolute loss has been 33%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 97%.
|Periods of worst performance|
|Absolute||-33% (May 2007 - March 2009)|
|Relative||-6% (February 2009 - December 2009)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.