Fidelity Global Future Leaders Fund

Fidelity Global Future Leaders Fund
Fund fact sheet Invest now

About this fund

A diversified portfolio of 40-70 small-to-mid-cap global companies.

Uses a rigorous bottom-up stock selection process that focuses on finding attractively valued companies with strong competitive positioning and sound company management.

A strong emphasis on building a diversified and balanced portfolio that aims to deliver more consistent returns through different market cycles.

 

Why this fund

Access to 180+ analysts around the world working to uncover the next 'future leader'

 

Hand-picked from a universe of around 4,000 stocks, access a diverse and exciting array of industries and sectors

Experienced investment experts dedicated to investing in global small to mid-cap companies

Latest global mid-cap equities insights

Meet James and Maroun

James Abela and Maroun Younes, Co-Portfolio Managers for the Fidelity Global Future Leaders Fund reveal what drives their passion for investing, why global mid and small caps are an exciting place to be, and the benefits of the co-portfolio manager structure.

Process and philosophy

James and Maroun talk about how they uncover investment opportunities through the Fund's tried and tested approach

Key facts

Unit prices (at 12/12/24)
Buy 17.3724 / Sell 17.303
Unit price history
Buy/sell spread
0.20%/0.20%

At a glance

Objective
To achieve returns in excess of the MSCI World Mid Cap Index NR over the medium to long term.
Benchmark
MSCI World Mid Cap Index NR
Management fee1
1.10% p.a
Fund size (at 12/12/24)
A$126.94M
Inception date
28 September 2020
Distribution frequency
Annually
Currency
Australian dollar

Unique identifiers

APIR code
FID5543AU
ARSN code
641516476
mFund code
FIL43

Fund managers

James Abela
Sydney
Maroun Younes
Sydney

Latest fund update

The fund had a really good quarter last quarter. The fund posted absolute return of 7.6%, outperforming the benchmark by almost 1.8%. It was a very strong quarter buoyed by increasing confidence, also buoyed by a reduction in interest rates.

And so, unsurprisingly, some of our key contributors for the quarter were interest rate sensitive stocks such as U.S. homebuilder NVR, CBRE, which is primarily exposed to commercial property, and James Hardie. In addition Applovin, one of our technology names, had really good back to back quarters both in Q1 and Q2 and on track to post about 40% revenue growth this year, which was far in excess of estimates.

Conversely, detractors primarily from the tech sector, as we see a broadening out of enthusiasm outside of AI and outside of the tech sector into more cyclically and interest rate exposed names.

So there's probably three big market observations. One is, sector leadership really is changing. The market has been driven for the last 12 months by consumer, technology, financials and industrials. And now it's really broadening out. So in the quarter the defensives have performed quite well relative to those sectors that have been the market leaders in the past. So that is definitely a change that we're now seeing in this quarter.

Secondly, the AI theme has definitely started to slow down. You had some really strong momentum stocks in the AI theme that have really come down in this quarter. So that's part of this broadening out of the thematic. 

And lastly the valuation discipline has really started to improve. So the valuation discipline was very forgiving and now it's become very very focused. So quality stocks have rallied quite strongly as have momentum stocks but that is really being challenged right now. 

So in terms of outlook for the market, the market has really been moving on earnings expansion but also multiple expansion and now it's going to be a lot more earnings focused because the multiple expansion has been going on for quite a long time.
So it's going to be earnings and very stock specific over the next 6 to 12 months.

Join Co-Portfolio Managers James Abela and Maroun Younes as they reflect on the main contributors and detractors to performance after a strong Q3, and how they are positioning the portfolio moving forward given recent market observations and thematics.

You can get more information about the Fund's top holdings here.

Performance2

See for yourself how the fund has performed since inception. The chart below represents the value now of $10,000 invested in the Fidelity Global Future Leaders Fund in September 2020 compared with $10,000 invested in the MSCI World Mid Cap Index NR.

Chart as at: 30 November 2024

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: MSCI World Mid Cap Index NR: NR at the end of the benchmark name indicates the return is calculated including reinvesting net dividends. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties. 

Net returns as at 30 November 2024

Timeframe 1 yr
%
3 yr
% pa
5 yr
% pa
Since inception
(28/09/20) % pa
Fund 29.97 8.43 - 14.43
Benchmark 28.04 7.50 - 12.87
Active return 1.93 0.93 - 1.56

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: MSCI World Mid Cap Index NR: NR at the end of the benchmark name indicates the return is calculated including reinvesting net dividends. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties. 

Net as at 30 November 2024

1 yr
%
3 yr
% pa
5 yr
% pa
Since inception
(28/09/20) % pa
Total return 29.97 8.43 - 14.43
Growth 29.97 8.19 - 13.93
Income - 0.24 - 0.50

Growth return is the unit price movement on exit to exit basis. Income is expressed as Total Return less growth component.

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: MSCI World Mid Cap Index NR: NR at the end of the benchmark name indicates the return is calculated including reinvesting net dividends. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties. 

DistributionDistribution (CPU)Reinvestment price
30-Jun-240.0000N/A

Sectors and holdings

As at 31 October 2024

As at 31 October 2024

As at 31 October 2024

% total net assets
APPLOVIN CORP 4.2%
NVR INC 3.9%
BROWN & BROWN INC 3.7%
GRAINGER (W.W.) INC 3.0%
CBRE GROUP INC 3.0%
ARES MANAGEMENT CORP 2.9%
AUTO TRADER GROUP PLC 2.8%
CBOE GLOBAL MARKETS INC 2.8%
CDW CORP 2.7%
GARTNER INC 2.7%

As at 31 October 2024

Fund % Benchmark % Relative %
APPLOVIN CORP 4.2 0.3 3.9
NVR INC 3.9 0.3 3.6
BROWN & BROWN INC 3.7 0.2 3.5
AUTO TRADER GROUP PLC 2.8 0.1 2.7
ARES MANAGEMENT CORP 2.9 0.3 2.6

As at 31 October 2024

Fund % Benchmark % Relative %
ONEOK INC 0.0 0.6 -0.6
TRADE DESK INC (THE) 0.0 0.5 -0.5
ROYAL CARIBBEAN CRUISES LTD 0.0 0.5 -0.5
FAIR ISAAC CORPORATION 0.0 0.5 -0.5
FASTENAL CO 0.0 0.4 -0.4

Fund ratings3

Organisation Rating / Recommendation
Zenith Recommended4
Lonsec

Recommended
The Lonsec Report is only available to financial advisers, please contact us for a copy.

Morningstar Bronze6

This Fund is subject to the risk of stock market fluctuations. Investors accessing the Fund through a master trust or wrap account will also bear any fees charged by the operator of such master trust or wrap account. Any apparent discrepancies in the numbers are due to rounding.

1Management costs and buy/sell spread are current as at the date of publication of this website. These fees may be subject to change in the future.

2Total returns (net) have been calculated using exit prices and take into account the applicable buy/sell spread and are net of Fidelity’s management costs, transactional and operational costs and assumes reinvestment of distributions. No allowance has been made for tax. Returns of more than one year are annualised. The return of capital is not guaranteed. 

3You should refer to respective research houses (and their disclaimers below) to obtain further information about the meaning of the rating and the rating scale. Ratings are only one factor to be taken into account when deciding whether to invest. Ratings are subject to change without notice and may not be regularly updated.  Ratings are current as at date (s) stated below. Fidelity pays a fee to some research houses for rating our funds.

4The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned November 2024) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines

5The Lonsec Rating (assigned May 2024) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Fidelity International product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

6© 2023 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). Rating assigned September 2023.

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