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.
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
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.
James and Maroun talk about how they uncover investment opportunities through the Fund's tried and tested approach
The market continued to grind up higher throughout Q2, although we've seen a bifurcation between the large caps and the rest of the market. Whilst the Mega-cap names continued to lead the market upwards, the small and mid-cap segment actually went backwards throughout the quarter.
Now, recession and hard landing fears continued to abate, although the last little bit of inflation is proving a little bit more stubborn to dispel for now. As a result, we've seen forecasts for interest rate cuts being pushed back further and further. And given that the small and mid-cap space is more exposed to interest rates, this deferral has weighed on the performance.
Nevertheless, at the margin, we are seeing incrementally more positive earnings revisions coming through, which should bode well for both the strength as well as the health of the market.
Since October of 2023, we've witnessed an expansion in valuation multiples as the market started to gain comfort around the possibility of avoiding a hard landing. However, now earnings growth is starting to come through, and those valuation multiples of gently making their way down, which is a sign of a textbook recovery pattern.
The Fund was down 6.1% net of fees for the quarter to 27th June 2024, which lagged the Index by 1%. This was primarily due to a couple of holdings, which disappointed market expectations.
Whilst the quarter itself sounds downbeat in isolation, it's worth remembering it came off the back of a very unusually strong Q1. So, actually 2024 to date still looks quite healthy.
From a country perspective, the US underperformed Europe, which really is in contrast to both what we saw in the large-cap segment of the global equity space, as well as what we saw in quarter one.
From a sector perspective, only utilities and communication services posted positive absolute returns, although the Fund itself experienced very strong returns from the healthcare space.
Overweight positions in materials, industrials and energy detracted from performance throughout the quarter. From a stock perspective, Transmedics was the standout performer with a very strong beat in its quarterly earnings. Other notable positive contributions included Auto Trader, FPT and Western Digital. Detractors included Nice, which although beat quarterly market expectations, suffered weakness in its share price due to the CEO's decision to retire. James Hardie guided to a softer than previously expected FY25. Whilst Moncler continues to navigate a slowdown in luxury spending.
Now the near-term fundamentals continue to look favourable despite the lack of any support from monetary policy easing which was expected at this point in time. It’s worth also noting that we're actually heading into an election season for a number of different countries, which include the US, the UK and France, amongst others. While that can create a lot of noise and volatility, typically the fourth and final year of the US presidential cycle has produced positive returns in equities. And so, I think this is a potential tailwind to keep in mind.
The Fund continues to be of higher quality than the benchmark, with exposure to both long term structural growth as well as short term cyclical growth. In addition, the portfolio companies have much lower debt levels than the broader benchmark. All of this we've managed to achieve without overpaying. So, in our view it continues to look quite balanced and attractive.
Want to stay up to date with the latest from the Fidelity Global Future Leaders Fund? Join Co-Portfolio Manager, Maroun Younes as he provides a short quarterly update covering:
You can get more information about the Fund's top holdings here.
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 September 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 September 2024
Timeframe | 1 yr % |
3 yr % pa |
5 yr % pa |
Since inception (28/09/20) % pa |
---|---|---|---|---|
Fund | 18.10 | 5.92 | - | 11.93 |
Benchmark | 18.14 | 5.13 | - | 10.78 |
Active return | -0.04 | 0.79 | - | 1.15 |
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 September 2024
1 yr % |
3 yr % pa |
5 yr % pa |
Since inception (28/09/20) % pa |
|
---|---|---|---|---|
Total return | 18.10 | 5.92 | - | 11.93 |
Growth | 18.10 | 5.68 | - | 11.42 |
Income | - | 0.23 | - | 0.51 |
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.
Distribution | Distribution (CPU) | Reinvestment price |
---|---|---|
30-Jun-24 | 0.0000 | N/A |
As at 31 August 2024
As at 31 August 2024
As at 31 August 2024
% total net assets | |
---|---|
NVR INC | 3.8% |
BROWN & BROWN INC | 3.5% |
CDW CORP | 3.0% |
AUTO TRADER GROUP PLC | 2.9% |
JAMES HARDIE INDUSTRIES PLC | 2.7% |
CBRE GROUP INC | 2.7% |
MONCLER SPA | 2.6% |
GRAINGER (W.W.) INC | 2.6% |
ARES MANAGEMENT CORP | 2.5% |
GARTNER INC | 2.5% |
As at 31 August 2024
Fund % | Benchmark % | Relative % | |
---|---|---|---|
NVR INC | 3.8 | 0.3 | 3.5 |
BROWN & BROWN INC | 3.5 | 0.3 | 3.3 |
AUTO TRADER GROUP PLC | 2.9 | 0.1 | 2.8 |
CDW CORP | 3.0 | 0.3 | 2.7 |
JAMES HARDIE INDUSTRIES PLC | 2.7 | 0.2 | 2.5 |
As at 31 August 2024
Fund % | Benchmark % | Relative % | |
---|---|---|---|
PALANTIR TECHNOLOGIES INC | 0.0 | 0.6 | -0.6 |
ONEOK INC | 0.0 | 0.5 | -0.5 |
TRADE DESK INC (THE) | 0.0 | 0.5 | -0.5 |
MONOLITHIC POWER SYSTEMS INC | 0.0 | 0.5 | -0.5 |
LENNAR CORP | 0.0 | 0.4 | -0.4 |
Organisation | Rating / Recommendation |
---|---|
Zenith | Recommended4 |
Lonsec |
Recommended5 |
Morningstar | Bronze6 |