100 Club Awards 2016: GEM Fund

This article is part of
100 Club Award Winners - November 2016

100 Club Awards 2016: GEM Fund
L-R: Julia Faurschou, reporter at Investment Adviser, Dennis Pellerito, associate director of national accounts at Fidelity International, and Richard Romer-Lee, managing director at Square Mile Investment Consulting & Research

Nick Price’s Fidelity Emerging Markets fund was named the winner in this category and was one of two awards given to Fidelity International at the ceremony. The fund looks to invest in high-quality, attractively priced companies capable of delivering sustainable returns.

The portfolio uses a team-based approach to invest in companies across Latin America, emerging Europe and the Middle East and Africa regions, and emerging Asia. The manager typically favours firms with strong market positions and competitive advantages, as these should deliver attractive earnings through the economic cycle.

Mr Price, who has been at the fund house for 19 years, also looks for companies with well-capitalised balance sheets. The portfolio’s largest country exposure is to China at 18.6 per cent, although this is underweight the MSCI Emerging Markets index exposure of 27 per cent. As of September 30 the portfolio has an overweight to India, relative to the benchmark, with an allocation of 14.3 per cent, compared with the index’s 8.5 per cent. 

Article continues after advert

The manager has a healthy allocation to companies in the consumer discretionary sector within the emerging markets at 25.7 per cent.

FE Analytics shows over five years to October 26 the fund has delivered an impressive return of 63.4 per cent, against the IA Global Emerging Markets sector’s average of 40.1 per cent and the MSCI Emerging Markets index gain of 32.3 per cent.


What the judges say

This fund was described by the panel of judges as having a strong process and has proved itself a reliable performer in all markets.



Carmignac Portfolio Emerging Discovery

Invesco Perpetual Global Emerging Markets

JPM Emerging Markets

T Rowe Price Emerging Markets Equity