fund
Fidelity Funds Emerging Markets W GBP
Invests in global emerging market equities with a quality growth style.
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160.60p
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.
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232.80p
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?
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0.00%
Initial chargeSome 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!
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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).
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1.08%
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.
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0.70%
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…
The fund aims to achieve long-term capital growth by investing in a portfolio of large and mid-cap emerging markets equities. Manager Nick Price forms the portfolio from the best ideas of Fidelity’s three regional emerging market portfolios (Asia, EMEA and Latin America). He is unconstrained by any benchmark, instead focusing on company fundamentals and bottom-up stock selection to target high quality companies that he believes are capable of delivering sustainable returns over the medium term.
Fund summary
| Sector | Global Emerging Markets |
| Structure | OFFSHORE FUND |
| Launched | March, 2014 |
| Size | £4,988m |
| Yield | 0.70% |
| Charging basis | Income |
| Dividends paid | Aug |
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 | 1.08% |
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Investment process
Stocks are researched by Fidelity’s emerging markets analysts based around the globe, who rate them from 1 (strong buy) to 5 (strong sell). Fidelity’s emerging markets fund managers use the highest conviction stocks to construct concentrated regional equity portfolios for each of the three main regions of the GEM universe - Latin America, EMEA and Emerging Asia. Holdings from these portfolios are the pool of ideas from which Nick Price selects for the Fidelity Emerging Markets fund. He favours companies with strong market positions and competitive advantages, as these are typically able to deliver attractive earnings throughout the economic cycle. He also looks for 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 manager and the team analyse each stock for quality, consistency of returns and attractive valuation, as the primary drivers of portfolio construction. Risk is monitored on both the individual stock and portfolio level.
Nick Price is an experienced emerging markets equities manager, having been running money in the space for over more than a decade and running this fund since 2010. He benefits from substantial analyst resources at Fidelity, important given the size and breadth of his investable universe. He is an accountant by trade and scrutinises companies’ balance sheets rigourously, which we believe is important when selecting the quality companies that he favours. Historically his investment style has enabled the fund to deliver a more defensive performance profile, often providing a degree of protection in falling markets.
Manager research
Average monthly relative returns
- 16/17 0.10%
- 17/18 0.26%
- 18/19 -0.14%
- 19/20 0.09%
- 20/21 1.41%
Bestinvest MRI
- 3 years 0.46%
- 5 years 0.35%
- Career 0.38%
- 3 years 89.40%
- 5 years 92.20%
- Career 99.80%
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 13.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.38%. 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
| 9.8606% | Alibaba Group Hldg Ltd |
| 8.2386% | Taiwan Semiconductor Manufacturing |
| 6.2701% | Samsung Electronics Co |
| 5.2339% | Naspers |
| 5.006% | China Mengniu Dairy Co |
| 4.4541% | Tencent Hldgs Ltd |
| 4.3017% | Hdfc Bank Ltd |
| 4.1147% | Zhongsheng Group Hldgs Ltd |
| 4.1126% | Aia Group Ltd |
| 3.6602% | Media Corp Plc |
| Source: Trustnet |
Sector breakdown
| Consumer Discretionary | 30.00% |
| Information Technology | 20.00% |
| Financials | 20.00% |
| Consumer Staples | 10.00% |
| Industrials | 6.00% |
| Materials | 6.00% |
| Communications | 5.00% |
| Money Market | 3.00% |
| Health Care | 1.00% |
Portfolio
Holdings range c.50-100.
Constraints
Stock and sector positions are limited to +/-4% and +/- 15% relative to the index, respectively