Fidelity launches Global Future Leaders Fund

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MEDIA RELEASE: Fidelity International has launched the Fidelity Global Future Leaders Fund, providing Australian investors targeted exposure to small and mid-cap investment opportunities from around the world.

The fund, co-managed by portfolio managers James Abela and Maroun Younes, offers access to an actively managed portfolio of 40 to 70 small to mid-cap global stocks with a market capitalisation between US$1 billion and US$40 billion.

The investment process is designed to identify the global large cap companies of the future at an early stage of their growth, based on the existing and highly successful strategy of the Fidelity Future Leaders Fund, managed by James Abela.  

Co-managers James Abela and Maroun Younes commented: “There’s a lot more to global investing than the mega household names like Apple and Amazon. The small- and mid-cap portion of the market offers investors exposure to inefficiently priced or undiscovered companies in their earlier stages of growth or maturity, and the associated upside growth prospects.

“In effect, we are looking for the stars of tomorrow, today – attractively valued companies with strong competitive positioning and sound company management.”

When considering stocks for the portfolio, the managers start by identifying stocks where the fundamentals are viable, sustainable and credible. 

Once they have narrowed down the universe of 1,000 stocks using these criteria, valuation metrics become the focus.  The stocks are assigned to one of four segments: quality, value, transition and momentum.  

They continue: “Our aim is to own a balance of stocks across these four segments which we believe can deliver more consistent returns through different market cycles.”