January, 2023
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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Monthly_Net_Jan23.pdfDecember, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Quarterly_Net_Dec22.pdfNovember, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Monthly_Net_Nov22.pdfOctober, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Monthly_Net_Oct22.pdfSeptember, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Quarterly_Net_Sep22.pdfAugust, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Monthly_Net_Aug22.pdfJuly, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Monthly_Net_Jul22-1.pdfApril, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Monthly_Net_Apr22-4.pdfJune, 2021
The information technology (IT), consumer staples, and utilities sectors were among the primary sectors that detracted from relative performance. In the IT sector, not owning U.S. graphics chips manufacturer Nvidia, iPad and iPhone manufacturer Apple, and the underweight to software firm Microsoft, and the investment in U.S.
digital workplace solutions company Citrix Systems detracted to performance. Nvidia shares rose after the company announced a four-for-one stock split in July. Shares also rose after the company forecast second-quarter revenue above analysts’ estimates and after Wall Street analysts raised their price targets. Additionally, Nvidia shares rose after competitor Broadcom announced its support of the company’s acquisition of U.K. chip designer Arm. Also, the announcement of a new partnership with Google to create an artificial intelligence (AI) and 5G innovation hub boosted shares. Shares of both Apple and Microsoft rose after the Labor Department announced a 5% increase in the U.S. consumer price index in May, with higher inflation viewed by the Fed as transitory as the economy reopens to full capacity following.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Quarterly_Net_Jun21.pdfDecember, 2020
The materials and consumer discretionary sectors were among the primary sectors that detracted from relative performance. Investments in materials companies including Canadian miners Barrick Gold, Agnico Eagle Mines and Kirkland Lake Gold, and Canadian precious metals streaming company Wheaton Precious Metals detracted from performance. Shares of all four companies declined after the price of Gold fell as investors moved out of precious metals due to progress on COVID-19 vaccines, as Pfizer and Moderna both announced trials that found over 90% effectiveness in both of their vaccines.
In the Consumer Discretionary sector, not owning U.S. electric vehicle manufacturer Tesla detracted from performance when shares rose after the company reported quarterly results that exceeded revenue and earnings expectations, marking a fifth consecutive quarter of profits. Deliveries remained strong, with nearly 140,000 vehicles making their way to customers, a new quarterly record for Tesla. Additionally, shares rose after the S&P 500 announced the company would join the exchange prior to the opening of trading on December 21, 2020. Among individual holdings, the investments in Regeneron Pharmaceuticals and U.S. pizza chain Domino’s Pizza detracted from performance.
Shares of Regeneron Pharmaceuticals declined during the quarter, despite reporting strong third-quarter financial results and garnering headlines in early October when President Trump was treated with the company’s antibody cocktail to combat COVID-19. The firm reported betterthan-expected revenues and earnings, aided by solid sales of its drug, Eylea, an injection to treat wet age-related macular degeneration. The stock struggled amid concerns about the president’s executive order to lower drug prices paid by Medicare, as well as the view that vaccine success could limit the need for Regeneron’s antibody treatment in the battle against COVID-19. Shares of Domino’s Pizza declined after the company reported a profit that came in below consensus estimates, as an increase in demand for pizzas during the pandemic was not enough to off set high costs related to COVID-19 and staff bonuses.
Among individual holdings, the underweight investments to U.S. e-commerce company Amazon.com and U.S. enterprise software and cloud computing provider Microsoft, and the investments in Danish offshore wind farm developer Orsted and U.S. pharmaceutical company Alexion Pharmaceuticals, and not owning social media platform operator Facebook and U.S. graphic chips manufacturer Nvidia contributed to performance. Shares of Amazon.com and Microsoft underperformed the market on news of positive results for two COVID-19 vaccines. Orsted shares rose after the company released third-quarter profit that was above consensus estimates, maintained its full-year guidance, and expects strong auctions in the months ahead.
Alexion Pharmaceuticals shares rose on news the British pharmaceutical company AztraZeneca would acquire the company in a US$39 billion dollar deal. Facebook shares underperformed the market after the company reported a decrease in users in the U.S. and Canada and only moderate revenue growth for the third quarter of 2020. Additionally, Facebook faced several regulatory headwinds, including an ongoing investigation by the U.S. Federal Trade Commission, as well as an early-stage investigation into its business practices in the European Union. Nvidia shares declined after the company projected a slight sequential decline in fourth-quarter data center revenue.
Also, the company said it continues to work through the regulatory approval process regarding its US$40 billion acquisition of Arm Holdings, announced in September. The deal is expected to help the combined company further its pursuits in artificial intelligence and could better support data centers used to power remote work. The agreement may face regulatory hurdles in the U.S., China and the U.K.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/FundFactSheet_fidelity-global-low-volatility-equity-fund_Quarterly_Net_Dec20-1.pdfasset_class: Foreign Equity
asset_category: Large Blend - Quantitative
peer_benchmark: Foreign Equity - Large Quantitative Index
broad_market_index: Developed -World Index
manager_contact_details: Array
ticker: FID9876AU
release_schedule: Monthly
commentary_block: Array
factsheet_url:
https://www.fidelity.com.au/funds/fidelity-global-low-volatility-equity-fund/
Downloads -> Fund Fact Sheet
fund_features:
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.
structure: Managed Fund