Fidelity Emerging Europe, Middle East and Africa W

Equity fund investing in central, eastern and southern Europe, the Middle East and Africa.

  • 248.30p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.12%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 19 January 2021

This fund targets long term capital growth by investing in equities in the emerging economies of Europe, the Middle East and Africa ("EMEA"). The fund will typically be heavily invested in the Russian and South African markets, since the region's other stock markets are on the whole relatively shallow. The manager looks for undervalued companies with strong franchises rather than "flavours of the month" and is prepared to hold them for the long term to realise value.

Fund summary

Sector Specialist
Structure OEIC
Launched March, 2014
Size £83m
Yield 0.00%
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 1.12%

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Investment process

The fund aims to generate long-term capital growth through investing primarily in securities of companies having their head office or exercising a predominant part of their activity in less developed countries of Central, Eastern and Southern Europe (including Russia), Middle East and Africa that are considered as emerging markets according to the MSCI Emerging EMEA index. The manager has a bottom-up approach with a value style, looking for unloved companies which can deliver solid long term returns. Typical portfolio companies will have strong franchises, high dividend yields, low PEs, strong cashflows and high returns on investment. The manager sets a target price for portfolio companies but does not require a short term catalyst for change, instead being prepared to wait for a number of years before value is realised. He has a dedicated team of EMEA analysts at his disposal, as well as Fidelity's worldwide network of emerging markets professionals.

Manager research

Average monthly relative returns

  • 16/17 -0.48%
  • 17/18 0.21%
  • 18/19 -0.26%
  • 19/20 0.51%
  • 20/21 0.97%

Bestinvest MRI

  • 3 years 0.40%
  • 5 years 0.19%
  • Career 0.37%
  • 3 years 87.90%
  • 5 years 82.40%
  • Career 99.70%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Nick Price

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 13.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.37%. During the worst period of relative performance (from November 2015 - March 2020) there was a decline of 12% 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 -44.00% (May 2008 - October 2008)
Relative -12.00% (November 2015 - March 2020)

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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

9.0089% Naspers
6.4574% Sberbank Of Russia
6.2788% Lukoil Pjsc
5.2876% Harmony Gold Mining Co
4.5566% Emirates Nbd Pjs
4.3132% Tcs Group Hldg Plc
4.2012% Sibanye-Stillwater Ltd
4.1258% Absa Grp Ltd
3.8524% Bupa Arabia For Cooperative Ins
3.6875% Drdgold Ltd
Source: Trustnet

Sector breakdown

Financials 28.00%
Materials 27.00%
Consumer Discretionary 19.00%
Energy 12.00%
Communications 6.00%
Consumer Staples 4.00%
Money Market 2.00%
Industrials 2.00%
Utilities 1.00%

Portfolio

Holds between 50 and 80 stocks. No currency hedging is used. Investable universe: companies in the MSCI EM EMEA Index as well as non benchmark companies where they have significant exposure to the region.

Constraints

Minimum market cap $1-2bn to ensure liquidity. There are no other limits on market cap, sector or country weightings.

Key Investor Information

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