Fidelity Global Emerging Markets is an Managed Funds investment product that is benchmarked against World Emerging Markets Index and sits inside the Foreign Equity - Emerging Markets 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 Emerging Markets has Assets Under Management of 496.53 M with a management fee of 1%, a performance fee of 0.00% and a buy/sell spread fee of 0.49%.
Selected exposure to materials We are underweight in the materials sector. The only commodity we own a stake in is copper, underpinned by our view that the metal is supply constraint and benefits from the move towards a greener energy and electric vehicles.
Our exposure is through First Quantum Minerals, a Canadian listed group with copper assets located across emerging markets, and Peru’s Southern Copper. Other than that, the Fund also continues to hold a position in Chinese waterproofing company Beijing Oriental Yuhong, which is also classified under materials. Biased towards financials AIA Group remains one of the high-conviction positions in the portfolio. It is the largest independent life insurance player in PanAsia, operating across HK, mainland China, Thailand, Singapore, Malaysia, etc. It has an excellent track record of execution, resulting in a strong balance sheet and disciplined capital allocation. Elsewhere, Indian lender HDFC Bank is favoured for its strong franchise, pristine asset quality, good management team and solid asset quality. Key trades We moved capital from Tencent to Naspers amid growth challenges on slowing game approvals in an uncertain macroeconomic environment.
Elsewhere, we sold the position in India-based service provider Tata Consultancy Services amid lower demand and expensive valuation. Within industrials, electrical light manufacturer Havells and power tools company Techtronic Industries were amongst the key contributors to returns. The latter reported encouraging results, posting robust growth from its Milwaukee, do-it-yourself (DIY) and Ryobi brands. The company continues to benefit from moving up the value chain and gaining market share with its battery-operated cordless power tool products.
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