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Bestinvest rating
FIDELITY EMERGING MARKETS W

FIDELITY EMERGING MARKETS W - Overview

Overview of FIDELITY EMERGING MARKETS W Buy in ISA Buy in Investment Account

The fund aims to achieve long-term capital growth, targeting outperformance the MSCI Emerging Markets Index by 2% net of fees on a rolling 3 year basis. The level of income is expected to be low. The fund seeks to invest in the best ideas from Latin America, the Emerging Europe Middle East and Africa (EMEA) region and Emerging Asia, investing in high quality, attractively priced companies that are capable of delivering sustainable returns.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Global Emerging Markets
Structure OEIC
Launched May, 2013
Size £1,988m
Yield 0.5%
Charging basis Income
Dividends paid Acc units only

Charges

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 1.04%

Risks

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 Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Nick Price is the experienced Emerging Markets equities manager, who has been running money in the space for over 10 years, and took over this fund in July 2009. He is an accountant by background and does scrutinise companies’ balance sheets rigourously. We find this being helpful in picking better quality companies that potentially better protect the fund’s performance in falling markets. The approach is team-based. Team members have over 17 years experience on average and have invested together since 2005.

Portfolio

Allocation Proportion(%)
Equity 95
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 5
Allocation Proportion(%)
UK 0
Europe 1
North America 1
Japan 0
Pacific 42
Emerging Markets 56
Allocation Proportion(%)
Large Caps 89
Mid Caps 11
Small Caps 0
View all performance data for this fund

Investment process

Applying team-based approach, Price favours companies with strong market positions and competitive advantages, as these are typically able to deliver attractive earnings throughout the economic cycle, selecting companies that deliver superior returns on their assets and have well capitalised balance sheets. Such companies are usually more able to fund internal growth without diluting existing shareholder earnings through issuing new shares. The highest conviction stocks are pulled from analysts based around the globe in Latin America, EMEA and Emerging Asia. These stocks are used to construct concentrated regional equity portfolios for each of the three main regions of the GEM universe. Holdings from these portfolios form the pool of ideas from which the GEM portfolio is constructed. The manager and the team analyse each stock for quality, consistency of returns and attractive valuation, being the primary drivers of portfolio construction. The portfolio is reasonably concentrated and risk is monitored on both the individual stock and portfolio levels.

Live feed

Bid price(inc) 149.00p
Accum units 149.00p
Fund commentary 14/05/15
Fund data updated on 21/07/17

Asset allocation

Allocation Proportion(%)
Equity 95
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 5

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 1
North America 1
Japan 0
Pacific 42
Emerging Markets 56

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 89
Mid Caps 11
Small Caps 0

Top 10 holdings

As at: 30/04/2017
6.4525%Naspers
5.7938%Taiwan Semiconductor Manufacturing
5.1499%Aia Group Ltd
5.0082%Hdfc Bank Ltd
4.0784%Sberbank Of Russia
3.7393%Steinhoff International Hldgs
3.4296%Baidu Inc
3.1144%Samsonite Intl Sa
2.4234%Grupo Mexico Sab De Cv Ser B
2.3379%Shanghai International Airport Co
Source: Trustnet

Sector breakdown

Consumer Discretionary 28%
Financials 24%
Information Technology 20%
Consumer Staples 12%
Materials 6%
Money Market 5%
Industrials 3%
Health Care 2%
Derivatives 0%

Portfolio details

Holdings range c.60 – 120

Constraints

- Stock positions * c. +/-4% v. index weight - Sector positions * c. +/- 7% v. index weight - Tracking error * c.4 - 7% - Active money * c.70 - 90%
There are some limits placed on the portfolio but these could result in significant divergences from the benchmark from time to time.

Average monthly relative returns Bestinvest MRI
12/13 13/14 14/15 15/16 16/17   3 years 5 years Career 3 years 5 years Career
0.90% 0.17% 0.54% 0.15% 0.39%   0.36% 0.43% 0.39% 89.60% 98.30% 99.50%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Nick Price

Manager. Price joined Fidelity International in 1998. He originally worked as a research analyst covering pan European chemicals, food manufacturing, tobacco and the telecommunications sectors before becoming assistant portfolio manager on the FF European Growth Fund in September 2004. In 2005 he established Fidelity’s Emerging EMEA team. Prior to Fidelity, he was an Accountant with SBC Warburg from 1996-1997, based in London; an FX Product Accountant with Daiwa Europe Bank between 1995-1996, based in London; a Project Accountant for JP Morgan from 1993-1995, based in London and Senior Auditor for Price Waterhouse from 1991-1993, based in Johannesburg. Price has a Bachelor of Commerce & Accounting from the University of Natal and is a Member of the South African Institute of Chartered Accountants. He is a CFA charter holder.

Track record

Nick Price has 10 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.39%. During the worst period of relative performance (from November 2015 - June 2016) there was a decline of 9% relative to the index. The worst absolute loss has been 44%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance
Absolute -44% (May 2008 - October 2008)
Relative -9% (November 2015 - June 2016)

Sector record since July 2007 (10 yrs)




About the MRI

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.

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