Alex Duffy

Fidelity International has been rewarded for its investment approach after being announced as the winner across two categories at the 2019 Zenith Fund Awards, including Australian Equities – Small Caps and International Equities – Emerging Markets and Regional.

The awards, hosted by Zenith Investment Partners, were announced at a lunch in Sydney yesterday, and recognise and encourage excellence in funds management. Each of the awards is based on long-term factors derived from Zenith’s extensive research and due diligence of fund managers including: 

• organisational and investment team strength,
• investment philosophy, 
• security valuation and selection,
• portfolio construction,
• risk management, and
• fees.

Zenith also looks at quantitative aspects of the funds longer term returns to investors in determining the award winners. It believes that recognising and encouraging excellence in funds management across all asset classes and disciplines is fundamental to raising the standards of funds management in the industry for the ultimate benefit of investors.

Fidelity’s Australian small and mid-cap fund, Fidelity Future Leaders Fund, is managed by James Abela and was launched in July 2013. Over the last year, it has returned 11.16 per cent after fees, compared to the benchmark return of 3.69 per cent*.  

The fund gives investors access to a diversified portfolio of between 40 to 70 stocks from listed Australian small to mid-cap companies. Mr Abela, who has 22 years’ investment experience, employs a rigorous bottom-up stock selection process that focuses on finding attractively valued companies with strong competitive positioning and sound company management.

Fidelity International director of consultant relationships, Andrew Mellor, said the fund is supported by a highly experienced Australian research team with a global network of 400 investment professionals.

“This award is recognition of the success of our efforts within the Australian equities space and testament to James’ sound investment approach which aims to deliver consistent returns through different market cycles,” he said.

The asset manager was also recognised for its performance within emerging markets investing. Fidelity International’s range of emerging market funds cover Asia, Emerging Markets, China and India, with the Fidelity Global Emerging Markets Fund offering investors access to a prudent investment approach that aims to provide attractive returns over time, while minimising loss of capital.

Mr Mellor said the fund has a particularly strong track record backed by more than 20 years’ experience investing in emerging markets, informed by over 50 on-the-ground analysts.

“Portfolio manager Alex Duffy applies a rigorous bottom-up stock selection process that focuses on companies that we believe are well positioned to generate returns through market cycles and have demonstrated a track record of strong corporate governance. Again, this award is validation that our investment approach [within emerging markets] is robust and hopefully our performance and returns will continue to exceed expectations,” he said.

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Alex Duffy

Fidelity International has launched its first Active ETF on the Australian Securities Exchange, the Fidelity Global Emerging Markets Fund (Managed Fund) (ASX: FEMX). 

As an active ETF, the fund has a benchmark index¹ but the portfolio management team makes active decisions about the underlying portfolio allocation rather than adhering to the index, with the aim to outperform the benchmark over time.

The Fidelity Global Emerging Markets Fund provides investors with access to a concentrated portfolio of 30-50 quality emerging market companies, and is managed by portfolio manager Alex Duffy.

Mr Duffy seeks to identify companies that are well positioned to generate returns through market cycles and have also demonstrated a strong corporate governance record.  He is supported by Fidelity International’s global network of 140 research analysts and 400 investment professionals.

Alva Devoy, managing director of Fidelity International in Australia, said Fidelity had chosen emerging markets for its first active ETF because of the particular opportunities available with this asset class.

“Developing economies offer a number of benefits for investors such as favourable demographics, the development of the middle classes and increased spending power.

“However, at the same time they are not without risk and in this uncertain market environment, active management is crucial.

“An active ETF strategy brings together the best of both the active and the passive world, offering investors access to our emerging markets capability and knowledge through the convenience of an ETF,” Ms Devoy said.

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Alex Duffy

Fidelity Active ETF Global Emerging Markets Fund (ASX: FEMX) is managed by experienced portfolio manager Alex Duffy and provides investors with access to a concentrated portfolio of 30-50 quality emerging market companies.

Alex aims to identify companies that are well positioned to generate returns through market cycles and have also demonstrated a strong corporate governance record.  He is supported by Fidelity International’s global network of 140 research analysts and 400 investment professionals.

Alva Devoy, Managing Director of Fidelity International in Australia, said emerging markets were the ideal asset class for Fidelity to launch its first active ETF. “As the global economy slows, our clients are increasingly looking to us to help them diversify their sources of returns.  Developing economies offer a fantastic opportunity due to a range of factors such as favourable demographics, the development of the middle classes and increased spending power.

“However, it’s important to understand that they are not without risk and in this uncertain market environment, active management is crucial. That’s why we’re excited to be able to offer investors access to our emerging markets fund through the convenience of an Active ETF.”

Alex Duffy, Portfolio Manager of Fidelity Active ETF Global Emerging Markets Fund, comments:  “Emerging markets have always been important to the global economy due to their size.  Over the last 20-30 years, we’ve seen emerging market GDP go from 30-40% of global output to almost 60%. In my view, this makes them too big to ignore.

“While some of these markets have faced tough times in recent months, we continue to find opportunities to invest in good quality businesses exposed to enduring themes such as the growth of consumption.  My focus is on those companies with strong corporate governance, strong balance sheet structures and good quality return profiles, all at a valuation that provides a margin of safety.”

Fidelity Active ETF Global Emerging Markets Fund (ASX: FEMX) is expected to open for investing on 29 October.

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