Fidelity Global Special Situations Fund W Acc Analyst Research PDF

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Morningstar Global Fund Report | Print Date: 23 August, 2021 | FINRA Members: For internal use or client reporting purposes only.

Fidelity Global Special Situations Fund W Acc GB00B8HT7153

Morningstar Analyst Rating

Œ

14 Sep 2020 14:28, UTC-0500

Analyst Notes Further Responsibilities for the Managers of Fidelity Global Special Situations; Ratings Unchanged Maintain Rating

09 Jun, 2021 | Fidelity has announced that effective 1 July 2021, Jamie Harvey will become lead manager of Fidelity Global Focus, taking over from Amit Lodha, who is leaving the firm. Jeremy Podger will become comanager on the fund. Podger will also be taking the lead manager role on Fidelity Global Equities temporarily until the permanent replacement for Lodha joins the group, which is expected to be in September 2021. While this represents an increase in the workloads for the two managers of the Fidelity Global Special Situations strategy, we do not believe the change will impair their ability to successfully manage it, given that the new responsibilities fall within their existing sphere of expertise. The Morningstar Analyst Ratings on all share classes of Fidelity Global Special Situations and Fidelity World therefore remain unchanged.

AJ Bell includes AJ Bell Holdings Limited and its wholly owned subsidiaries. AJ Bell Management Limited and AJ Bell Securities Limited are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. AJ Bell procures the provision of the Morningstar Licensed Tools on an “as is” basis and does not guarantee the performance of or accept liability for the Licensed Tools. To the maximum extent permitted by law, AJ Bell excludes liability for the Licensed Tools, including liability for any failure, interruption, delay or defect in the performance of any Licensed Tool, unless it arises as a direct result of the negligence of AJ Bell.

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Morningstar Global Fund Report | Print Date: 23 August, 2021 | FINRA Members: For internal use or client reporting purposes only.

Fidelity Global Special Situations Fund W Acc GB00B8HT7153

Morningstar Analyst Rating

Morningstar Category

Category Index

Total Assets

Current Yield %

Inception Date

Global Large-Cap Blend Equity

MSCI ACWI NR USD

3,299.68 Mil GBP

—

15/10/12

2011

Equity Style Map

2012

2013

2014

2015

2016

2017

2018

2019

Domicile/ Currency

2020

2021

Giant Large Mid

35K 20K 15K

Small Micro

10K

03/12 07/19

Total Named Managers

2

Morningstar Pillars Process High Performance People High Parent Above Average Price

94 -19.25 -9.10 -12.59

8 13.91 4.89 2.88

Growth of 10,000 Annualized Fund Category Index

Value Ret GBP % 32,833 11.89 25,365 9.19 30,504 11.12

Full Manager Change Partial Manager Change

5 14.71 7.27 4.07

5 10.84 7.48 7.55

23 27.85 4.36 -0.81

12 16.92 4.34 3.68

51 -6.51 0.20 -2.73

28 22.27 3.24 0.56

12 17.75 7.16 5.08

80 8.31 % -2.56 -2.86

Quartile Rank in Category Percentile Rank in Category Total Return GBP +/- Category +/- Index

Process Equity Style Box Asset Allocation Stock Bond

Cash

Other

Equity Supersectors

34 44 21

35 41 24

37 43 20

36 43 21

35 45 20

33 44 23

35 45 20

36 39 25

35 46 18

30 48 23

31 47 22

—

—

—

—

—

—

—

—

—

—

0.91

The conduct of Morningstar's analysts is governed by Morningstar's Code of Ethics, Securities Trading and Disclosure Policy, and Morningstar Manager Research Integrity Policy. For informaton regarding conflicts of interest, please click http://global.morningstar.com/managerdisclosures Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum

´

6 28.82 8.25 8.30

4 4 7 7 7 4 4 4 4 4 4

This strategy's manager has proved adept at delivering strong returns in a variety of market conditions.

„

Performance 31/07/21

Morningstar Rating

Analyst View Bhavik Parekh, Analyst

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QQQQ

QQQQQ QQQQ QQQ QQ Q

) & & & & & & ( * & )

Jeremy Philip Elliot Podger Jamie Peter Harvey

Morningstar Rating

GBR/GBP

Deep Value Blend Growth High Value Growth

People

14 Sep 2020 14:28, UTC0500

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‰

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The Morningstar Analyst Rating for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the Morningstar Analyst Rating for a fund. Morningstar Analyst Ratings are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund’s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term (defined as a full market cycle or at least five years). Neutral represents funds in which our analysts don’t have a strong positive or negative conviction over the long term (defined as a full market cycle or at least five years) and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term (defined as a full market cycle or at least five years). Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit http://global.morningstar.com/managerdisclosures

14 Sep, 2020 | With the backing of Fidelity's vast analytical resources, the experienced Jeremy Podger continues to keep investors in Fidelity Global Special Situations on a steady path through a variety of market conditions. The continued consistency in the sensible approach has contributed to increased conviction, and under our enhanced ratings framework the Morningstar Analyst Rating is upgraded to Gold from Silver for all share classes. Podger joined Fidelity in 2012 and was charged with steadying and rebuilding the group's flagship global-equity offering. He brought a wealth of experience running global equities from different investment houses--he successfully managed Threadneedle Global Select (2003-11) and Investec Global Free Enterprise (1996-2003)-making him highly qualified to manage this strategy. In July 2019, Fidelity promoted Jamie Harvey, who had been working with Podger on this strategy since January 2018, to associate portfolio manager to help develop his portfoliomanagement skills. In practice, Podger remains the lead manager and key decision-maker. Podger is also well backed by Fidelity's equity analyst team based in Europe (including analysts covering North America) and Asia. He has made effect-

m Cyclical w Sensitive x Defensive

Price TER/OGC

ive use of both internal and external resources in the management of this strategy so far. Indeed, Podger's willingness to consult with multiple sources and clearly interpret his colleagues' research in a global context is one of this strategy's strengths. Podger applies the same style-agnostic investment approach with which he has had so much success in the past, albeit within a framework that he introduced specifically for this strategy. He aims to construct a portfolio of companies that fall under one of three kinds of special situations: exceptional value, unique business, or corporate change. While Podger is trying to create a balanced portfolio that will perform well through a range of market conditions, investments are still driven by conviction, and, with no significant constraints on portfolio construction, deviations from the index and peers can be sizable. This is reflected in a typically slightly higher volatility than peers and the benchmark, although we note that the risk/return profile remains favourable. Performance has been strong under Podger at Fidelity, with returns being driven primarily by strong stock selection.

AJ Bell includes AJ Bell Holdings Limited and its wholly owned subsidiaries. AJ Bell Management Limited and AJ Bell Securities Limited are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. AJ Bell procures the provision of the Morningstar Licensed Tools on an “as is” basis and does not guarantee the performance of or accept liability for the Licensed Tools. To the maximum extent permitted by law, AJ Bell excludes liability for the Licensed Tools, including liability for any failure, interruption, delay or defect in the performance of any Licensed Tool, unless it arises as a direct result of the negligence of AJ Bell.

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Morningstar Global Fund Report | Print Date: 23 August, 2021 | FINRA Members: For internal use or client reporting purposes only.

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Fidelity Global Special Situations Fund W Acc GB00B8HT7153 Morningstar Category Process: Approach Global Large-Cap Blend

Morningstar Analyst Rating

Œ

14 Sep 2020 14:28, UTC0500

Category Index

Index Proxy

MSCI ACWI NR USD

iShares MSCI ACWI ETF

Equity

A well-structured process, executed soundly, contributes to a High view.

quantitative screens, including HOLT and StarMine, are coupled with Podger's own qualitative overlay to reduce the universe of global stocks with a capitalisation above USD 1 billion to a more manageable size (about 150 names). He aims to identify companies that fall into at least one of three categories: exceptional value, unique business, or corporate change. Podger defines "exceptional value" as stocks that he believes have at least a 50% upside over three years. "Unique businesses" are considered as those that dominate their industry and have a sustainable

competitive advantage. "Corporate change" companies are those believed to have a catalyst over a 12- to 18-month horizon that can lead to a significant share price increase. Where possible, he leverages the research undertaken by the group's in-house analysts. For stocks not covered inhouse, he uses his own research or that of trusted external sources. Meeting management is considered key.

Equity Style 30/04/21

Asset Allocation 30/04/21

Sectors 30/04/21

Holdings-Based Style Map

Current Allocation

Process Pillar

High

14 Sep, 2020 | Jeremy Podger adheres to a sensible process when filtering investment ideas, and he makes good use of the resources available to him. The strategy aims to achieve a gross return of 4% per year ahead of the MSCI AC World Index over a rolling three-year period. Ideas are generated primarily from the bottom up. Basic

ve

ve ns i De fe

Fund 3-Yr Avg Category

Proxy

81.7 17.9 0.3

83.7 15.6 0.7

85.1 14.8 0.0

Avg Market Cap Bil GBP 49.3

41.4

82.0 16.6 1.4

155.9 105.6

Fund 3-Yr Avg Category

15.7 1.8 1.4 8.3 2.0

18.9 3.2 2.3 13.2 1.7

Fund 3-Yr Avg Category

13.2 0.3 1.4 10.3 5.6

siti

Small Micro

Net Assets %

Giant/Large Mid Small/Micro

Long-Term Earnings % Historical Earnings % Sales % Cash Flow % Book-Value %

Larger sector concentrations versus the index move the investment to the corner of the triangle corresponding to that equity Super Sector.

Cyclical

Category Average Index Proxy

Equity Style Box Factors

Growth Measures

Fund Index

Sen

Giant Large Mid

Zone: 75% of fund equity holdings

Market Cap

Price/Prospect. Earnings 17.9 Price/Book 2.1 Price/Sales 1.4 Price/Cash Flow 10.9 Dividend Yield 1.4

Sector Delta

Fund Centroid: Weighted average of equity holdings

Deep Value Blend Growth High Value Growth

Value Measures

3-Year Average

11.4 6.0 2.9 8.6 7.1

12.7 4.6 -1.1 9.8 2.6

Proxy

18.3 2.6 2.1 11.9 1.8 Proxy

13.7 0.1 0.4 5.9 3.5

Equity Fixed Income Cash Other

Fund 3-Yr Avg Category

Proxy

Equity Sectors

97.8 0.1 2.1 0.0

99.7 0.0 0.3 0.0

x Defensive 22.4 s Consumer Defensive 2.8 d Healthcare 14.4 f Utilities 5.2

22.0 2.5 14.1 5.4

23.7 7.7 13.9 2.0

22.1 7.2 12.2 2.7

w Sensitive 46.7 i Communication Serv. 11.7 o Energy 1.3 p Industrials 8.2 a Technology 25.5

43.9 8.4 5.7 8.8 21.1

43.2 9.6 2.1 10.8 20.8

43.2 9.7 3.2 9.7 20.7

m Cyclical r Basic Materials t Consumer Cyclical y Financial Services u Real Estate

34.1 2.6 9.0 19.8 2.8

33.1 34.6 4.0 4.7 11.4 11.4 15.6 15.7 2.2 2.8

98.2 0.1 1.6 0.0

93.8 0.0 0.9 5.2

Regional Exposure 30/04/21 Market Type Equity %

Developed Emerging Top 5 Countries Equity %

United States Japan United Kingdom Germany Netherlands

Fund 3-Yr Avg Category

96.4 3.6

95.2 4.8

97.1 2.9

Fund 3-Yr Avg Category

52.0 8.2 7.3 6.7 5.6

53.7 8.3 6.2 5.4 5.3

61.7 5.9 6.2 3.3 2.0

Proxy

91.6 8.4 Proxy

59.0 5.9 3.9 2.4 1.4

Net Margin % ROA % Debt/Total Capital % ROE %

Proxy

12.9 5.7 40.3 17.0

16.3 8.3 38.9 22.8

15.6 6.1 38.9 17.7

17.7 9.7 38.4 25.0

30.8 1.3 8.5 19.5 1.5

Proxy

Economic Moat 30/04/21 Fund 3-Yr Avg Category

Proxy

Wide Moat Narrow Moat No Moat

26.8 47.2 26.0

25.4 50.7 23.9

51.7 34.4 13.9

46.2 37.9 15.9

Coverage Ratio

84.6

83.9

85.3

84.0

Key Ratios 30/04/21 Fund 3-Yr Avg Category

Fund 3-Yr Avg Category

AJ Bell includes AJ Bell Holdings Limited and its wholly owned subsidiaries. AJ Bell Management Limited and AJ Bell Securities Limited are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. AJ Bell procures the provision of the Morningstar Licensed Tools on an “as is” basis and does not guarantee the performance of or accept liability for the Licensed Tools. To the maximum extent permitted by law, AJ Bell excludes liability for the Licensed Tools, including liability for any failure, interruption, delay or defect in the performance of any Licensed Tool, unless it arises as a direct result of the negligence of AJ Bell.

ß

®

Morningstar Global Fund Report | Print Date: 23 August, 2021 | FINRA Members: For internal use or client reporting purposes only.

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Fidelity Global Special Situations Fund W Acc GB00B8HT7153 Morningstar Category Process: Portfolio Global Large-Cap Blend

Morningstar Analyst Rating

14 Sep 2020 14:28, UTC0500

ΠCategory Index

Index Proxy

MSCI ACWI NR USD

iShares MSCI ACWI ETF

Equity

An unconstrained portfolio of predominantly large-cap global equities with a slight growth bias. Process Pillar

High

14 Sep, 2020 | The portfolio contains 70-110 global equities, split roughly equally (though the weights have changed over time) into "exceptional value," "unique businesses" and "corporate change." Portfolio construction is unconstrained, with position sizes a function of risk/return and portfolio fit. Deviations from the index and peers

can be sizable as a result. The portfolio has been overweight to the eurozone in recent years, funded by a underweighting to the US and the omission of certain markets such as Canada and Australasia. As of May 2020, the largest relative sector positions included the overweighting to healthcare and financials, which came at the cost of consumer staples and industrials. In absolute terms, the strategy had a large-cap bias. However, compared with the peers and the index, its average market capitalisation was lower. Since Jeremy Podger took over, the portfolio has

straddled the blend/growth border of the Morningstar Style Box. This reflects where Podger has found the most ideas so far, but, given the styleagnostic approach, we don't expect the strategy to venture far from the blend space. Podger uses the ability to take short positions but has indicated that he will do this only sparingly (...