Fidelity Global Emerging Markets (FID0031AU) Report & Performance

What is the Fidelity Global Emerging Markets fund?

Fidelity Global Emerging Markets aims to achieve returns in excess of the MSCI Emerging Markets Index over the suggested minimum investment time period of seven years plus.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Fidelity Global Emerging Markets

Fidelity Global Emerging Markets Fund Commentary December 31, 2022

During the quarter, the Fund delivered 5.9% while the MSCI Emerging Markets Index delivered 4.0%. At the sector and country level, stock picking added value. Here, financials and consumer staples were among the top contributors to returns. From a country perspective, Hong Kong and Taiwan added value. Security selection in Hong Kong and China aided relative returns Selected Chinese stocks featured among the top contributors to returns as the market regained lost ground. Zhongsheng Group, Shenzhou International and Yifeng Pharmacy enhanced gains. Likewise, Hong Kong-based life insurance company AIA Group, which operates in the Chinese market, advanced on expectations of a recovery in Chinese demand.

In addition, it reported an in-line third quarter despite a challenging macroeconomic backdrop. Tencent was a notable detractor An underweight exposure to Tencent hurt relative returns. The company reported 2% year-on-year growth in adjusted profits in its latest quarterly results, after four consecutive quarters of decline. Furthermore, the stock rallied as authorities granted licences to over 100 new games. Losses were partially offset by our position in South Africa’s Naspers, which holds a key stake in Tencent.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Fidelity Global Emerging MarketsFID0031AUManaged FundsForeign EquityEmerging MarketsForeign Equity - Emerging Markets IndexWorld Emerging Markets Index496.53 M1%0.00%0.49%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Fidelity Global Emerging Markets6.36%4.79%6.77%-2.98%8.04%12.3%13.2%11.28%-6.1%-24.61%-27.18%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Fidelity Global Emerging MarketsForeign Equity - Emerging Markets Index-7.52%1.43%NA%NA%NA%1.495.78%4.47%0.950.92

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Fidelity Global Emerging MarketsYes-https://www.fidelity.com.au/-

Product Due Diligence

What is Fidelity Global Emerging Markets

Fidelity Global Emerging Markets is an Managed Funds investment product that is benchmarked against World Emerging Markets Index and sits inside the Foreign Equity - Emerging Markets Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Fidelity Global Emerging Markets has Assets Under Management of 496.53 M with a management fee of 1%, a performance fee of 0.00% and a buy/sell spread fee of 0.49%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Fidelity Global Emerging Markets has returned 6.36% in the last month. The previous three years have returned -2.98% annualised and 11.28% each year since inception, which is when the Fidelity Global Emerging Markets first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Fidelity Global Emerging Markets first started, the Sharpe ratio is NA with an annualised volatility of 11.28%. The maximum drawdown of the investment product in the last 12 months is -6.1% and -27.18% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Fidelity Global Emerging Markets has a 12-month excess return when compared to the Foreign Equity - Emerging Markets Index of -7.52% and 1.43% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Fidelity Global Emerging Markets has produced Alpha over the Foreign Equity - Emerging Markets Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Emerging Markets Index category, you can click here for the Peer Investment Report.

What level of diversification will Fidelity Global Emerging Markets provide?

Fidelity Global Emerging Markets has a correlation coefficient of 0.92 and a beta of 1.49 when compared to the Foreign Equity - Emerging Markets Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Fidelity Global Emerging Markets and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Fidelity Global Emerging Markets with the World Emerging Markets Index?

For a full quantitative report on Fidelity Global Emerging Markets compared to the World Emerging Markets Index, you can click here.

Can I sort and compare the Fidelity Global Emerging Markets to do my own analysis?

To sort and compare the Fidelity Global Emerging Markets financial metrics, please refer to the table above.

Has the Fidelity Global Emerging Markets been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Fidelity Global Emerging Markets?

If you or your self managed super fund would like to invest in the Fidelity Global Emerging Markets please contact via phone or via email .

How do I get in contact with the Fidelity Global Emerging Markets?

If you would like to get in contact with the Fidelity Global Emerging Markets manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Fidelity Global Emerging Markets. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - September 30, 2022

Selected exposure to materials We are underweight in the materials sector. The only commodity we own a stake in is copper, underpinned by our view that the metal is supply constraint and benefits from the move towards a greener energy and electric vehicles.

Our exposure is through First Quantum Minerals, a Canadian listed group with copper assets located across emerging markets, and Peru’s Southern Copper. Other than that, the Fund also continues to hold a position in Chinese waterproofing company Beijing Oriental Yuhong, which is also classified under materials. Biased towards financials AIA Group remains one of the high-conviction positions in the portfolio. It is the largest independent life insurance player in PanAsia, operating across HK, mainland China, Thailand, Singapore, Malaysia, etc. It has an excellent track record of execution, resulting in a strong balance sheet and disciplined capital allocation. Elsewhere, Indian lender HDFC Bank is favoured for its strong franchise, pristine asset quality, good management team and solid asset quality. Key trades We moved capital from Tencent to Naspers amid growth challenges on slowing game approvals in an uncertain macroeconomic environment.

Elsewhere, we sold the position in India-based service provider Tata Consultancy Services amid lower demand and expensive valuation. Within industrials, electrical light manufacturer Havells and power tools company Techtronic Industries were amongst the key contributors to returns. The latter reported encouraging results, posting robust growth from its Milwaukee, do-it-yourself (DIY) and Ryobi brands. The company continues to benefit from moving up the value chain and gaining market share with its battery-operated cordless power tool products.

Performance Commentary - June 30, 2022

The Fund delivered -4.0% in AUD terms during the quarter, while the MSCI Emerging Markets Index NR was down by 3.3%. At a sector level, stock picking in financials and the positioning stance in consumer discretionary contributed to performance. However, supply chain issues and fears over deteriorating consumer demand weighed on the information technology sector. At the country level, stock picking in China contributed to relative returns. Security selection in China enhanced gains A rotation to growth was evident with strong performance apparent amongst autos and de-carbonization supply chain companies such as Zheijiang Sanhua and Zhongsheng Group.

Elsewhere, the holding in sportswear brand Li Ning gained on expectations of a recovery in consumption as Covid restrictions ease. AIA Group was amongst key contributors The insurer benefited from an improving sales outlook as Covid cases wane in China. The company is likely to see an increase in agent sales headcount, improved productivity in the distribution channel, and continued demand for protection coverage. Additionally, AIA received approval to begin preparation for a branch in Henan province which is expected to keep the insurer on track to reach 70% of the mainland China market by end-2024.

Performance Commentary - September 30, 2021

Whilst parts of our investment universe are seeing in improvement in the COVID pandemic, the possibility of subsequent waves remain a concern. As a result, volatility is likely to persist for some time, even as markets have increasingly been focussing on economic recovery, and are more likely to look through near term concerns. The synchronised monetary and fiscal support globally has boosted money supply, which is getting channelled into consumption and capital markets. Whilst we need to be mindful of valuation excesses in certain segments, the current environment is conducive for a wider financial penetration and growth in EM. China Evergrande has amassed huge debt, with many other Chinese property developers in a similar position with a possibility of contagion, but we do not see it as a systemic risk. Although one cannot be certain, it is extremely likely that the Chinese government will step in to provide stability to the sector, if such as step is required,we will see significantly less residential construction, which will have a bearing on Chinese GDP.

Performance Commentary - June 30, 2021

Key detractors South Africa’s internet conglomerate Naspers came under some pressure during the quarter. The stock was negatively impacted by overhanging regulatory concerns, which weighed on its key stake in China’s Tencent. Within industrials, truck engine manufacturer Weichai Power was the detractor from returns. While it can continue to grow market share over the medium term, it is exposed to a slowdown in the near term. Materials delivered mixed performance Copper miner First Quantum Minerals and painting business SKSHU were among the key contributors to returns. However, the limited exposure to Brazilian iron ore miner Vale held back gains as iron ore prices soared. Consumer discretionary stock aided returns Many Chinese consumer holdings, including Li Ning (sportswear), Shenzhou International (clothing) and Zhongsheng Group (automobiles) added value. Shares in Li Ning rallied after it issued a positive profit alert towards the end of the quarter.

However, some of these gains were partially offset by internet business VIP Shop, which traded lower alongside the broader industry on the back of the government’s focus on anti-trust matters. Midea Group (white goods) also weighed on returns.

Performance Commentary - December 31, 2020

Consumer discretionary holdings contributed strongly
Chinese consumer discretionary holdings, including Li Ning (sportswear), Midea Group (white goods) and VIP Shop (e-commerce), supported returns. The structural underweight stance in Alibaba also proved beneficial, as investors grew concerned about anti-trust regulation. These gains were partially offset by the lack of exposure to internet platform Pinduoduo and electric vehicle manufacturer NIO. Both stocks rallied on the back of strong results and retail flows. However, we are not inclined to chase these names at current valuations.

Financials names added value
Financials re-rated, reflecting improving prospects over the re-opening of the global economy. Consequently, holdings in Indiabased Housing Development Finance and HDFC Bank supported performance, as did the position in Indonesia-based Bank Central Asia.

Industrials detracted
Industrials weighed on returns, reflecting the weaker performance of Weichai Power (truck engines) and Techtronic Industries (power tools). The latter performed consistently over the course of the year as the do-it-yourself trend supported demand for its products. However, it failed to keep pace as the market rotated towards ‘recovery’ plays.

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