Fidelity Global Enhanced Income W

  • 147.40p
    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.

  • 216.50p
    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).

  • 0.98%
    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.

  • 4.70%
    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…

Prices as at 27 September 2021, fund data last updated 19 October 2015

This fund is the sister fund to the Fidelity Global Dividend fund, which is a traditional global equity income mandate. This enhanced version increases the yield payable to approximately 150% of the MSCI AC World index yield through the use of a covered call strategy, which involves selling call options on stocks held in the portfolio in return for a premium. The strategy boosts the fund's yield, although investors effectively sacrifice some potential capital upside.

Fund summary

Sector Global Equity Income
Structure OEIC
Launched
Size £372m
Yield 4.70%
Charging basis Capital
Dividends paid 30 Apr, 31 Jul, 31 Oct, 31 Jan

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.98%

Allocation

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Investment process

The manager’s approach is primarily bottom-up, looking at each individual holding in the portfolio and making a judgement on the sustainability of the dividend given the strength of the balance sheet. 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 trading on attractive valuations which provide a margin of safety. This focus is primarily on larger stocks – those with the market cap / free float of $1bn+. The manager is benchmark agnostic (individual sector weight can go up to 25%, whilst regional allocation can be +/- 25% on a relative basis; the fund’s active share is typically > 80%). The manager is looking to strike a balance between delivering a headline yield and growing distribution per unit. A covered call overlay is used to enhance the yield on the fund. Typically 40-60% of the fund will be over written at any given time. The fund uses an active covered call strategy as this has historically produced superior returns.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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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Sector breakdown

Money Market 18.00%
Financials 16.00%
Health Care 14.00%
Information Technology 14.00%
Consumer Staples 11.00%
Industrials 10.00%
Utilities 8.00%
Communications 6.00%
Materials 1.00%
Consumer Discretionary 1.00%

Portfolio

- Typically around 50- 60 stocks - Multiple sources of alpha, including core, value and 'bond like equities'

Key Investor Information - Income

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Key Investor Information - Accumulation

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