Fidelity Inst Emerging Markets R

Investment Process

The management team look to invest in high quality, attractively priced companies that are capable of delivering sustainable returns. They look for companies with strong market positions and competitive advantages, as these are typically able to deliver attractive earnings throughout the economic cycle. They also favour companies that deliver superior returns on their assets and have well capitalised balance sheets. The process begins with idea generation, with a strong emphasis placed on the buy/sell ratings of Fidelity's research analysts in addition to company meetings, site visits and local market insight. The stocks are rated by the analysts from 1 (strong buy) to 5 (strong sell). The highest conviction stocks identified are further critiqued by Fidelity’s regional equity portfolio managers, with the most attractive stocks used to construct concentrated equity portfolios for each of the three main regions of its investment universe - Latin America, EMEA and Emerging Asia. The management team then select from this pool of ideas using their bottom-up fundamentals approach. They analyse each stock for quality, consistency of returns and attractive valuation. The fund has over 50 holdings with the top ten accounting for around half of portfolio assets. The average holding period is around two years. Its main sector bias is to Information Technology, followed by Financials and Materials. Its primary geographical exposure is to China, Taiwan, India, and South Korea.