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

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 03/10/24)
Buy 15.4138 / Sell 15.3522
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 03/10/24)
A$111.74M
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 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:

  • What's happening in the market
  • Fund performance including key contributors and detractors
  • Any changes to positioning and the short-term outlook

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 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. 

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

Sectors and holdings

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

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 2023) 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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