Fidelity World E-Acc-EUR |
Morningstar's Take
|24/09/2021by Bhavik Parekh
With the backing of Fidelity's vast analytical resources, the experienced Jeremy Podger continues to keep investors in Fidelity World on a steady path through a variety of market conditions. With Podger at the helm, employing a consistent and sensible approach, the fund retains a Morningstar Analyst Rating of Gold for the Y-acc share class. Other share classes range from Gold to Bronze.Having taken over its management in June 2014, Podger runs this fund identically to the UK-domiciled Fidelity Global Special Situations OEIC (although emerging-markets exposure and derivatives are prohibited) that he has managed since 2012. He brought a wealth of experience running global equities from different investment houses--he successfully managed Threadneedle Global Select (2003-11) and Investec Global Free Enterprise (1996-2003)--making him highly qualified to manage this strategy. In July 2019, Fidelity promoted Jamie Harvey, who had been working with Podger on this strategy since January 2018, to associate portfolio manager to help develop his portfolio-management skills. In practice, Podger remains the lead manager and key decision-maker. Podger is also backed by Fidelity's equity analyst team based in Europe (including analysts covering North America) and Asia. He has made effective use of both internal and external resources in the management of this strategy so far. Indeed, Podger's willingness to consult with multiple sources and clearly interpret his colleagues' research in a global context is one of this strategy's strengths.Podger applies the same style-agnostic investment approach with which he has had so much success in the past, albeit within a framework that he introduced specifically for this strategy. He aims to construct a portfolio of companies that fall under one of three kinds of special situations: exceptional value, unique business, or corporate change. While Podger is trying to create a balanced portfolio that will perform well through a range of market conditions, investments are still driven by conviction, and, with no significant constraints on portfolio construction, deviations from the index and peers can be sizeable. This is reflected in a typically slightly higher volatility than peers and the benchmark, although we note that the risk/reward profile remains favourable. Performance has been strong under Podger at Fidelity, with returns being driven primarily by strong stock selection. |
To find out how Morningstar rates a fund click here.
Portfolio RoleThe strategy provides diversified exposure to predominantly large-cap global equities and can therefore be used as a core holding.
| Morningstar Pillars | |
| People | High |
| The manager has been able to make effective use of Fidelity's large analytical resources. | |
| Parent | Above Average |
| Changes to senior management need monitoring, but we consider Fidelity International an above-average parent. | |
| Process | High |
| A portfolio of global stocks that are well-defined into three categories shows a strong process is in place. | |
| Performance | |
| Jeremy Podger has continued to extend his long and strong track record on this strategy. | |
Morningstar Analyst RatingMorningstar evaluates funds based on five key pillars, which it's analysts believe lead to funds that are most likely to outperform over the long term on a risk-adjusted basis.
|
| Morningstar reserve its rights to charge for access to these Ratings and/or Rating report. |
|
| Permissions/Reprints E-mail Morningstar |
