September, 2023
At a sector level, while certain healthcare names hurt returns, exposure to selected communication services and financials holdings proved rewarding. Certain semiconductor stocks came under pressure along with the broader technology sector. Leading supplier of lithography tools ASML Holding declined in this regard. Renesas Electronics pared gains after very strong performance earlier this year and evidence of solid execution in its business. Within the health care space, HCA Healthcare sold off amid negative investor sentiment over Q3 seasonality impacting revenues, despite ongoing recovery in utilisation and decreasing wage pressures. Medical technology company Masimo underperformed on disappointing quarterly revenues and guidance. Elsewhere, LG Chemical detracted from returns, following weaker than expected quarterly earnings. Brokerage and risk management service provider Arthur J Gallaghar outperformed, as strategic buyouts and effective capital deployment continued to drive stock performance. Meanwhile, Berkshire Hathaway delivered strong quarterly results, driven by higher underwriting income. Certain mega cap stocks maintained resilience amid positive developments. In particular, Google’s parent company Alphabet continued to rally, as strong growth prospects of YouTube and its underappreciated cloud business help maintain dominance in the space. Meta Platforms outperformed on the back of strong quarterly earnings, ad targeting capabilities and revenue growth.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Quarterly_Net_Sep23.pdfJune, 2023
The Fund delivered positive returns and outperformed the index over the quarter. At a sector level, robust security selection within the financials sector buoyed performance, while exposure to the consumer discretionary sector holdings hurt returns. Marvell Technology rallied, as potential for a boom in AI technologies drove strong performance for chipmakers. Renesas Electronics contributed to returns, on the back of solid quarterly revenues and earnings guidance. In contrast, the lack of exposure to semiconductor company Nvidia weighed on relative returns, as the stock rallied on the back of stellar revenues and earnings guidance for the upcoming quarter. Meta Platforms, and Amazon.com delivered robust quarterly earnings results driven by revenue growth and margin improvement. Alphabet outperformed, following optimism surrounding rapid advances in generative AI. Conversely, the underweight stance in Apple held back relative returns, as the investors looked for relatively safe haven stocks amidst market volatility. Elsewhere, Arthur J Gallaghar delivered solid top-line revenue growth and positive momentum in new businesses.
Diversified conglomerate company Berkshire Hathaway reported strong quarterly earnings driven by higher underwriting income and Net Interest income (NII). Alibaba Group Holding declined as quarterly earnings missed estimates. Danaher underperformed as the company is going through a trough cycle and revised down its 2023 revenue guidance, driven lower by biotech funding challenges. UnitedHealth Group fell over concerns regarding increased outpatient utilization negatively impacting medical loss ratios (MLR).
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Quarterly_Net_Jun23.pdfMarch, 2023
The Fund delivered positive returns and outperformed the index over the quarter. At a sector level, exposure to communication services proved rewarding, while certain financials sector holdings held back returns.
Alphabet rallied as it unveiled new artificial intelligence (AI) capabilities for its suite of productivity apps. Meta Platforms reported robust quarterly revenues boosted its share buyback programme. Shares in Alibaba Group Holding outperformed following the announcement of significant restructuring plans within the company. Within IT, Renesas Electronics contributed to returns as net profits increased, supported by strong demand for chips. The holding in Salesforce rose after it raised its forecast for profit margins and doubled stock buyback plans. In contrast, the lack of exposure to Nvidia weighed on relative returns. The stock rallied strongly over the quarter on optimism around generative AI which drove an acceleration in demand. The underweight stance in Apple also held back relative gains as shares rose amid expectations that the company would move into the rapidly expanding augmented reality arena. Shares in diversified conglomerate holding company Berkshire Hathaway lagged the broader market. The collapse of SVB and issues related to troubled Swiss lender Credit Suisse led to significant volatility in the US and European banking stocks. In particular, Wells Fargo came under pressure amid heightened risk aversion as well as contagion fears in the overall financial sector.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Quarterly_Net_Mar23.pdfJanuary, 2023
The Fund generated a return of 4.0% compared to the index which returned 3.1% during the month. At a sector level, while certain financials sector names held back gains, exposure to the consumer discretionary sector proved rewarding. At a stock level, shares in Chinese e-commerce major Alibaba Group Holding rebounded amid increased investor optimism surrounding the reopening of China’s economy given pent up demand and an improving regulatory backdrop. The company’s ecosystem has superior breadth and depth and is the foundation of the highly sticky merchants and consumers, which ultimately supports its pricing power. Certain quality growth compounders such as Google’s parent company Alphabet and technology conglomerate Amazon.com outperformed following a rebound in growth stocks on anticipation that the Fed may slow its tightening activity. These businesses demonstrate solid long-term fundamentals along with a coveted brand loyalty. An attractive growth runway and margin potential buoyed by structural behavioural shifts, new growth initiatives and a keen focus on profitability also bodes well in the long term.
Elsewhere, the holding in General Electric reported stronger than expected quarterly earnings and spun off its medical technology unit. The company is a self-help story with a pathway to higher margins and organic growth in the aviation, renewable and power segments. Its corporate simplification efforts are expected to release value.
In contrast, the conviction holding in UnitedHealth Group fell despite reporting upbeat quarterly earnings. The company offers best in class services in comparison to peers, while the continued shift from traditional Medicare fee-for-service to Medicare Advantage (MA) is driven by better patient outcomes and better healthcare resource utilization. Shares in health care focused industrial conglomerate Danaher slid following a cautious revenue outlook for the year 2023, majorly driven lower by Covid related revenues. However, long term growth avenues for Danaher remain strong, anchored by bioproduction and molecular diagnostics segment growth. Despite reporting upbeat quarterly results, Axis Bank came under pressure over investor concerns about the exposure of the Indian banking sector to the Adani Group, accused of fraud and stock manipulation. However, our preliminary analysis suggests that the impact on Axis Bank will be limited. It maintains a leading position in the private sector with improving asset quality and substantial income fee from transaction and merchant banking activities.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Monthly_Net_Jan23.pdfDecember, 2022
The Fund delivered positive returns and outperformed the index over the quarter. While financials positions contributed in a high interest rate environment, the Fund’s strong orientation towards quality and growth stocks was negative as holdings in mega cap tech space along with healthcare declined.
Certain financials holdings buoyed returns
Investors remained positive about reinsurer Renaissancere Holdings’ strong capital capacity to deploy and grow in a hardmarket. Indian banking franchise Axis Bank delivered robust quarterly revenues driven by higher net interest income margins. Elsewhere, the lack of exposure to electric vehicles manufacturer Tesla and an underweight stance in iPhone maker Apple contributed to relative returns as negative investor sentiment coupled with supply issues in respective end markets weighed on shares.
September, 2022
Financials positions buoyed by upbeat quarterly results Insurance company Arthur J Gallagher delivered robust revenues on the back of strong organic growth in its brokerage business. Diversified conglomerate holding company Berkshire Hathaway outperformed following strong quarterly results owing to higher favourable development within the Reinsurance segment. The holding in Charles Schwab rose, driven by the company’s inorganic growth efforts and initiatives to augment trading revenues.
Healthcare names added value UnitedHealth Group continues to benefit from stable healthcare utilization, favourable pricing environment and potential Medicaid expansion in the long term. Healthcare-focused conglomerate Danaher and US hospital operator HCA Healthcare delivered upbeat quarterly earnings, beating market expectations.
Key detractors Not owning shares in electric vehicle manufacturer Tesla weighed on returns as the stock outperformed following strong quarterly results. Chinese technology major Alibaba Group Holding came under pressure over a cyber security breach related to AliCloud. Elsewhere, the underweight stance in technology conglomerate Apple detracted from relative performance as the stock rallied following upbeat quarterly revenues. Google’s parent Alphabet pared gains, despite reporting better-than-expected quarterly earnings. It maintains strong competitive advantages and an excellent track record of innovation.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Quarterly_Net_Sep22.pdfJune, 2022
The Fund returned -9.3%, while the index returned -7.9% during the quarter. At a sector level, while industrials and consumer discretionary holdings hurt returns, selected health care names proved rewarding. Amazon.com came under pressure over weaker than expected sales forecast for the upcoming quarter. Cognex underperformed following disappointing earnings guidance, citing a slowdown in automation projects. The company’s industry leading vision and technologies give it a differentiating edge compared to its peers. Elsewhere, Intercontinental Exchange fell, notwithstanding upbeat quarterly performance. Certain growth stocks continued to remain under pressure as valuation compression dragged prices lower.
Consequently, the holding in Uber Technologies fell in this regard. General Electric declined as a series of macro headwinds weighed on stock performance. UnitedHealth Group added value, as managed care companies continued to benefit from a rising interest rate and stagflationary environment. Bristol Myers Squibb delivered strong quarterly earnings driven by robust in-line product growth, increased adoption of new product portfolio and strong commercial execution. Quality insurance franchises such as AIA Group and Arthur J Gallagher continued their upward growth trajectory, benefiting from strong pricing, prudent underwriting, and an improving rate environment. Elsewhere, Dutch internet conglomerate Prosus added value buoyed by strategic reinvestments and the recent sale of its stake in Tencent to fund share buybacks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Quarterly_Net_Jun22.pdfMarch, 2021
Robust security selection in the consumer discretionary and energy sectors added value, while certain communication services holdings detracted from returns. Energy holding buoyed performance Shares in Texas Pacific Land rose led by the cyclical rebound in crude oil prices. It has a large royalty position in the Permian basin and has maintained its profitability in a turbulent environment, due to its low need for maintenance capital. Global independent energy company Hess reported solid quarterly earnings due to higher production in the Bakken play and lower operating expenses. It remains focused on improving capital and operational efficiencies as its asset are starting to become meaningful cash flow generators
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Quarterly_Net_Mar21.pdfFebruary, 2021
Designed to be a core international holding of 80-120 of Fidelity’s best global ideas, researched by our 400 experienced investment professionals located around the world. A truly active manager, we take a 360 view of every company we invest in, refreshing our views every 120 days to ensure we take advantage of the best opportunities globally and have a portfolio built with conviction. Stock selection favours mis-valued businesses and structural growth stories
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-global-equities-fund_Monthly_Net_Feb21.pdfDecember, 2020
ArcelorMittal rose on upbeat market sentiment
Steel and mining company ArcelorMittal rallied after a stock upgrade boosted investor sentiment. It maintains attractive valuations with reduced balance sheet risk, increasing its potential to rebound strongly once the macroeconomic environment improves.
IT holdings added value
Electronics manufacturer Flex reported solid quarterly results due to continued strength in its health care and solar segment. Videogame developer Unity Software delivered robust revenues driven by superior technological innovation and increasing end user engagement.
Key detractors
Biotechnology major Regeneron Pharmaceuticals lagged in line with defensive sectors. Yet, it issued an upbeat guidance driven by its solid track record in innovation. US biopharmaceutical company Amgen declined after disappointing results in a key final-phase clinical trial for heart ailments. It offers investors a differentiated investment opportunity adding further potential for in-organic growth. Polish video game developer CD Projekt Red slid after numerous glitches were reported by players ahead of its launch.
ticker: FID0007AU
commentary_block: Array
factsheet_url:
https://www.fidelity.com.au/funds/fidelity-global-equities-fund/related-documents/fund-fact-sheet/
Fund Factsheet -> “Fund Performance”
https://www.fidelity.com.au/funds/fidelity-global-equities-fund/
release_schedule: Quarterly
fund_features:
The Fidelity Global Equities Fund is designed to be a core holding for investors seeking the growth and diversification benefits of global equities, with an experienced fund manager. The Fund seeks to invest in the winners of tomorrow and has a 20-year proven track record of solid performance through market cycles, selecting companies with strong management teams, leading innovation and sustainable pricing power which operate in industries that they believe will benefit from future themes.
- The Fidelity Global Equities Fund gives investors access to a diversified portfolio of 80 to 120 quality companies in global markets. The Fund is actively managed, which means only quality companies are selected, with the aim to provide investors consistent returns across market cycles.
- Access to research and insights from 400 investment professionals worldwide, including 140 on-the-ground analysts, they have the resources and the expertise to discover some of the best opportunities around the world.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Growth
peer_benchmark: Foreign Equity - Large Growth Index
broad_market_index: Developed -World Index
structure: Managed Fund