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1 June, 2008Roadtest
Fidelity Global Equities Fund
The heavyweight of global funds management
Performance
Based on Fidelity’s own numbers, the fund was down 6.97% in the year to April 30, but up 8.95% a year over three years and 8.6% over five. Perversely, it’s actually the one-year loss that’s most impressive: that’s a 6.89 percentage point outperformance of its benchmark, though that’s scant comfort if you were in it.
Holdings
When last disclosed at the end of March, the fund had some noteworthy country allocations: 32.2% in the US and just 3.9% into Japan, both considerably below the MSCI benchmark. Overweights appear to be Europe and Asia. By sector, consumer staples are the biggest chunk at 14.6%, followed by materials, energy, financials and IT. 8% is in cash.
Experience
Fidelity is famous for its analysts and fund managers all over the world – 900 investment professionals. In every major market you can think of they have people on the ground looking at stocks and visiting companies in person. In comparison to some Australia-based global equities funds, they’ve got an army, although that doesn’t necessarily mean they always outperform.
Fees
Management fee is 1.15%, with a 0.3% buy/sell spread.
Gripes
Was lagging the benchmark in the three and six months to April 30, though it has consistently outperformed over time.
Verdict
Big name, delivering so far since its entry into the Australian retail market.
