Fidelity Global Low Volatility Equity Fund aims achieve returns, in excess of the MSCI World Index (N) over the suggested minimum investment time period of five to seven years. The Fund is a core strategy that aims to provide long-term capital growth in excess of the MSCI World Index while targeting an overall lower risk profile. The typical volatility is expected to be around 60%-80% of the MSCI World Index. The Fund uses Fidelity’s fundamental research and analysis to drive the stock selection process. Using our analysts’ company ratings, alongside a quantitative risk model, to construct an optimal portfolio which is managed on a daily basis. The Fund is expected to exhibit various style or allocation exposures over time including both positive and negative exposures to such factors as growth, value, momentum and quality relative to the market. The Fund is expected to show consistent negative exposure to volatility and beta.
The consumer discretionary and financials sectors detracted from performance. In the consumer discretionary sectors, not owning Amazon.com and electric vehicle manufacturer Tesla detracted from performance. Amazon.com shares rose after a Wall Street analyst lowered its price target but maintained the outperform rating on the company. Tesla shares rose after a consumer price index report showed inflation cooled for the month of December and on hopes that a reopening in China would boost its business.
Shares of Tesla also rose after the company released quarterly earnings and revenue that topped consensus estimates. Additionally, the company said recent price cuts have buoyed demand for its vehicles. In the Financials sector, the overweight to exchange operator CBOE Global Markets detracted from performance. Shares of CBOE Global Markets declined after the company reported in-line quarterly results that were weighed down by heavy investments in its business.
The energy and materials sectors contributed to performance. In the energy sector, being underweight in the sector and not owning US oil producer Chevron contributed to performance. While Chevron posted profit for the full-year that topped consensus forecasts, shares declined after it’s fourth-quarter earnings missed analysts’ estimates, due to higher expenses and weaker oil profits. In the materials sector, the investment in Canadian precious metals streaming company Wheaton Precious Metals contributed to performance. Shares of Wheaton Precious Metals rose as the price of gold increased during the month on concern of rising recession expectations and elevated inflation.
Among individual holdings, not owning US pharmaceutical company Pfizer contributed to performance. Shares of Pfizer declined as Wall Street analysts downgraded the stock on concern of its Covid business. Additionally, while Pfizer announced quarterly results that topped consensus estimates, shares also declined after the company lowered its 2023 guidance as the pandemic eases and demand for its Covid portfolio falls.
What is Fidelity Global Low Volatility Equity Fd Fidelity Global Low Volatility Equity Fd is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Quantitative 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 Low Volatility Equity Fd has Assets Under Management of 69.66 M with a management fee of 0.65%, a performance fee of 0.00% and a buy/sell spread fee of 0.25%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Fidelity Global Low Volatility Equity Fd has returned -1.14% in the last month. The previous three years have returned 1.3% annualised and 9.64% each year since inception, which is when the Fidelity Global Low Volatility Equity Fd 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 Low Volatility Equity Fd first started, the Sharpe ratio is 0.57 with an annualised volatility of 9.64%. The maximum drawdown of the investment product in the last 12 months is -9.49% and -11.68% 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 Low Volatility Equity Fd has a 12-month excess return when compared to the Foreign Equity - Large Quantitative Index of 0.53% and -0.94% 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 Low Volatility Equity Fd has produced Alpha over the Foreign Equity - Large Quantitative Index of -0.09% in the last 12 months and 0.01% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - Large Quantitative Index category, you can click here for the Peer Investment Report.
What level of diversification will Fidelity Global Low Volatility Equity Fd provide?
Fidelity Global Low Volatility Equity Fd has a correlation coefficient of 0.9 and a beta of 0.72 when compared to the Foreign Equity - Large Quantitative 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 Low Volatility Equity Fd and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Fidelity Global Low Volatility Equity Fd with the Developed -World Index?
For a full quantitative report on Fidelity Global Low Volatility Equity Fd compared to the Developed -World Index, you can click here.
Can I sort and compare the Fidelity Global Low Volatility Equity Fd to do my own analysis?
To sort and compare the Fidelity Global Low Volatility Equity Fd financial metrics, please refer to the table above.
Has the Fidelity Global Low Volatility Equity Fd 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 Low Volatility Equity Fd?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Fidelity Global Low Volatility Equity Fd. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - December 31, 2022 In the consumer discretionary sector, shares of Tesla declined after Elon Musk sold almost US$4 billion worth of the stock as a result of liquidity needs for his purchase of Twitter. Shares also declined as technology stocks declined on concerns of slowing global growth and recessionary fears and after Tesla had to close its Shanghai plant temporarily due to an increase in Covid infections. Shares of Amazon.com declined after the company reported third-quarter sales that missed consensus estimates and forecast a slowdown in sales growth during the holiday season due to consumers and businesses spending less due to inflation.
Additionally, shares declined amid overall market weakness and concerns over a tight labour market. In the communication services sector, Meta Platforms shares declined after the company reported quarterly earnings that missed consensus estimates due to a slowdown in online ad spending, challenges from Apple’s iOS privacy update and increased competition from TikTok. Additionally, the company issued a weak forecast for the fourth quarter. Alphabet shares declined after the company released quarterly earnings that missed Wall Street estimates as advertising sales growth slowed. Shares also fell amid a broader selloff within technology stocks as these companies faced cost pressures, layoffs and a slowdown in demand due to rising inflation and interest rates and declining consumer spending. Among individual holdings, shares of Apple, along with other technology stocks, declined on concerns of slowing global growth and recessionary fears after the Fed raised interest rates and the US Commerce Department released retail sales for the month of November that declined more than anticipated. Additionally, shares declined on concerns that strict Covid restrictions in China affected iPhone manufacturing. In the industrials sector, shares of CH Robinson declined after the company was downgraded by several Wall Street Analysts as freight demand and shipping prices eased.
Performance Commentary - November 30, 2022 The Fund outperformed the MSCI World Index during the month. Four out of eleven sectors contributed to relative performance. The materials and energy sectors were among the largest contributors to relative performance, while the industrials and healthcare sectors detracted from performance. In the materials sector, the investment in British miner Anglo American contributed to performance. Shares of Anglo American rose after the Chinese government slightly eased its strict Zero-Covid Policies, which increased speculation that the government would consider eventually removing its public health controls.
In the energy sector, the underweight to the sector contributed to performance as it underperformed the market. Among individual holdings, the underweight to iPad and iPhone manufacturer Apple and not owning U.S. electric vehicle manufacturer Tesla contributed to performance. Apple shares declined early in the month on concerns that strict Covid restrictions in China affected iPhone manufacturing done by Foxconn.
By the middle of the month, shares rose but not enough to offset the previous decline, driven by investor optimism on news that U.S. inflation eased, which set off a risk-on rally. Shares of Tesla declined after Elon Musk sold almost US$4 billion worth of the stock as a result of liquidity needs for his purchase of Twitter. In the industrials sector, the investment U.S. defense company Northrop Grumman detracted from performance. Northrop Grumman shares declined along with other defense stocks as the Ukraine successfully reoccupied the regional capital of Kherson, which opened the possibility of some diplomatic solutions.
In the healthcare sector, the investment in U.S. health insurer Humana detracted from performance. Humana shares declined after investors moved out of defensive healthcare stocks. Among individual holdings, the investment in U.S. utility company Dominion Energy detracted from performance. Dominion Energy shares declined after several Wall Street analysts downgraded the stock after the company reported it would conduct a review of its business strategy during its quarterly earnings report.
Performance Commentary - October 31, 2022 In the financials sector, the investment in insurer Assurant detracted from performance. Assurant shares declined after the firm reported preliminary earnings that missed consensus estimates due to a challenging macro environment, foreign exchange headwinds, elevated catastrophe losses and lower program volumes and higher claim costs. Additionally, the company lowered its earnings outlook. In the energy sector, not owning U.S. integrated oil company Exxon Mobil detracted from performance. Shares of Exxon Mobil rose after the company signaled strong third-quarter earnings due to natural gas pricing. Among individual holdings, the underweight investment in iPad and iPhone manufacturer Apple detracted from performance. Apple shares rose after the company released quarterly revenue and profit that topped Wall Street estimates lifted by strength of laptop computer sales.
In the consumer discretionary sector, not owning Amazon.com and U.S. electric vehicle manufacturer Tesla contributed to performance. Shares of Amazon.com declined after the company forecast a slowdown in sales growth during the holiday season due to consumers and businesses spending less due to inflation. Tesla shares declined after the company reported quarterly car deliveries that were up more than 100,000 units from a year ago but fell short of analysts’ expectations. Additionally, shares declined as Elon Musk agreed to purchase Twitter on its original terms. In the communication services sector, not owning Facebook parent Meta Platforms contributed to performance. Meta Platforms shares declined after the company reported quarterly earnings that missed consensus estimates due to a slowdown in online ad spending, challenges from Apple’s iOS privacy update and increased competition from TikTok. Additionally, the company issued a weak forecast for the fourth quarter.
Performance Commentary - September 30, 2022 The Consumer Discretionary and Communication Services sectors detracted from relative performance. In the Consumer Discretionary sector, not owning U.S. electric vehicle manufacturer Tesla and online retailer Amazon.com detracted from performance. Shares of Tesla rose, as the maker of electric vehicles reported quarterly financial results that topped analysts’ expectations but also reflected soaring inflation, supply-chain disruption, a labor shortage, and higher costs for materials and logistics.
These and other challenges kept Tesla from consistently running its factories at full capacity, the company said, including its Shanghai facility, which temporarily closed due to COVID-19 lockdowns in China. Nonetheless, Tesla delivered roughly 255,000 vehicles in the second quarter, a notable increase over the same period in 2021 but lower than in Q1 2022. Shares of Amazon.com rose, even though the company posted its second consecutive quarterly loss amid what it called “continued inflationary pressure in fuel, energy and transportation costs,” as well as a large write-down on its investment in electric-vehicle maker Rivian Automotive.
Bright spots included the company’s cloud-computing and advertising businesses, which drove Amazon’s 7% gain in revenue for the second quarter. In the Communication Services sector, the investment in U.S. cable operator Liberty Broadband detracted from performance. Shares of Liberty Broadband declined on concerns of rising inflation and as short selling increased on the stock.
The Health Care and Consumer Staples sectors contributed to performance. In the Health Care sector, the investment in biopharmaceutical company Regeneron Pharmaceuticals contributed to performance. Shares of Regeneron Pharmaceuticals surged in early September when the firm announced promising results from a late-stage clinical trial for high-dose usage of its eye medication Eylea.
Broader approval of the anti-blindness treatment, developed in conjunction with Germany’s Bayer, could help Regeneron compete with branded and generic alternatives, including a drug from Roche Holding that launched earlier this year. In the Consumer Staples sector, the investment in U.S. chocolate manufacturer The Hershey Company contributed to performance. The Hershey Company shares rose after the company released second-quarter results that surpassed consensus estimates, lifted by higher prices, improved volumes, and buyout contributions. Additionally, the company lifted its full-year guidance.
Performance Commentary - August 31, 2022 Six out of eleven sectors contributed to relative performance. The information technology (IT), utilities, and industrials sectors were among the largest contributors to relative performance, while the energy and materials sectors detracted from performance. In the IT sector, not owning Nvidia, maker of graphics chips used in cloud computing, artificial intelligence and autonomous driving contributed to performance. Shares of Nvidia declined after the company reported quarterly earnings and revenue that missed consensus estimates as chip demand slowed. Additionally, shares declined after comments from the U.S. Federal Reserve Chairman indicated plans to continue to keep monetary policy tight until inflation is under control.
In the utilities sector, our overweight to the sector contributed to performance as the sector outperformed the market. In the industrials sector, the investment in U.S. fertilizer manufacturers CF Industries and Mosaic contributed to performance. Shares of both companies rose in anticipation of global price increases of fertilizer due to decreased supply. Prices are expected to rise as some European fertilizer manufacturers had to halt production since it had become no longer economically viable to produce, as gas prices rose in Europe due to sanctions imposed against Russia. In the energy sector, the underweight to the sector and not owning U.S. independent oil producer ConocoPhillips detracted from performance. Shares of ConocoPhillips rose after the company announced quarterly results that topped consensus expectations. In the materials sector, the investment in U.S. aluminium producer Ball detracted from performance. Ball shares declined after the company announced quarterly profit that fell short of analysts’ expectations, due primarily to a one-time impairment charge as the company divested its Russian assets. Additionally, demand slowed in the company’s North American beverage segment.
Among individual holdings, the investment in discount retailer Dollar Tree detracted from performance. While Dollar Tree announced quarterly same-store-sales and profit that were in-line with consensus estimates, shares declined as the company lowered its full-year profit forecast as it competes with other retailers that have been increasing discounts to draw in consumers. Due to rising inflation, Dollar Tree has had to compete with companies like Walmart and Target that increased discounts due to elevated inventory as consumers cut back on discretionary purchases.
Performance Commentary - July 31, 2022 The consumer discretionary and IT sectors detracted from performance. In the consumer discretionary sector, not owning U.S. ecommerce firm Amazon.com and U.S. electronic vehicle manufacturer Tesla detracted from performance. Amazon.com shares rose in mid-July after the company announced that it had its biggest Prime Day event in history. At the end of the month, shares rose further after the company reported quarterly sales that topped consensus estimates. Shares of Tesla rose after the company released quarterly earnings that exceeded analysts’ estimates. Tesla shares also rose on favorable analyst coverage and from broader market momentum. In the IT sector, the underweight investment in U.S. iPhone and iPad manufacturer Apple detracted from performance. Apple shares rose after the company announced third-quarter sales and profits that topped Wall Street estimates. The energy sector contributed to performance. The underweight to the sector contributed to performance as the price of oil declined.
Performance Commentary - April 30, 2022 The Fidelity Global Low Volatility Equity Fund outperformed the MSCI World Index during the month. Nine out of eleven sectors contributed to relative performance. The information technology (IT) and consumer discretionary sectors were among the largest contributors to relative performance, while the energy sector detracted from performance.
The IT and consumer discretionary sectors contributed to performance. In the IT sector, not owning US graphics card manufacturer and graphics processing unit designer NVIDIA contributed to performance. NVIDIA shares declined after a Wall Street analyst downgraded the stock due to weaking demand for graphics processing chips. Additionally, shares fell on news that the company plans to double the number of shares it is authorised to issue.
In the Consumer discretionary sector, the underweight investment in online retailer Amazon.com and not owning US electric vehicle manufacturer Tesla contributed to performance. Amazon.com shares declined after the company reported first-quarter results that missed consensus estimates due to decreased online shopping, increased costs due to inflation, and supply chain issues. The company also provided a weak outlook for the second quarter. Tesla shares declined as the CEO, Elon Musk, sold approximately US$8.4 billion worth of Tesla shares to help fund his takeover bid for Twitter. Shares of both companies also declined on concerns of rising inflation and interest rates.
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