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Fund Rationale: Fidelity Funds - Global Dividend Fund

Fidelity Funds - Global Dividend Fund
SGD Retail Class SR Accumulation Shares (ISIN: LU1380763851)

Fund Manager Page

Introductory information
The Fidelity Funds - Global Dividend Fund (the "Fund”) aims to achieve income and long-term capital growth principally through investments in income-producing equity securities globally. The Fund is actively managed and the Manager will target investments which it believes offer attractive dividend yields in addition to price appreciation. The Fund is benchmarked against the MSCI AC World (N), and is suitable for investors who aim to achieve income and long-term capital growth, and are prepared to accept a high level of risk. 

The SGD Class SR Accumulation is a CPFIS-specific share class which was incepted on 4 April 2016; it will reinvest all the dividends received. The inception date of the oldest share class of the Fund is 30 January 2012. As of September 2020, the Fund managed a total asset of SGD 12.1bn.

 

Characteristics
As the Fund may invest globally, it may invest across different countries and regions, including countries considered to be emerging markets. It is unconstrained in the amount it may invest in any single country or region. As of July 2020, the Fund holds 30.2% in equities from the USA, 16.8% from the UK, and others including Switzerland, Germany, Spain, France, and Japan. Its top 5 sector exposure includes IT (18.3%), financials (17.6), health care (14.9%), consumer staples (13.9%), and industrials (11.2%).

 

Background information and cost
SGD Class SR share class has an underlying fund management fee of 130bps per annum (1.30% p.a.) and a total expense ratio (“TER”) of 169bps per annum (1.69% p.a.). Endowus have arranged for Fidelity to rebate the trailer fees which Endowus will refund 100% back to the client to achieve a lower net management fee of 110.5bps per annum  (1.105% p.a.) and a net TER of 149.5bps per annum (1.495% p.a.). Endowus do not charge a preliminary sales charge or any other fees, other than the all-in advice fee. The Fund is on the CPF Investment Scheme - List A Fund, and is included under the CPF Investment Scheme for Ordinary Account. It has been classified by the CPF Board under the risk classification of “Higher Risk - Broadly Diversified”.

Fidelity International, whose capabilities lie in asset management solutions for personal, wholesale, and institutional clients, is responsible for a total asset of USG 565.7bn from over 2.52 million clients across Asia, Europe, the Middle East, South America, and Canada as of 30 June 2020.

 

Selection criteria for Endowus
Endowus have selected Fidelity Global Dividend Fund for its exposure to a globally diversified portfolio of high-dividend stocks. The Fund is also well-managed to select dividend-paying stocks which tend to be more defensive and less volatile - the portfolio has realised less volatility than the MSCI AC World benchmark (11.36% vs 16.44%) on a 3-year annualised basis as of July 31 2020. During the 2020 Feb - Mar equity market drawdown, the Fund also showed more resilience than the general benchmark. Despite the Fund’s lower volatility, its performance has been in line with the global equity market: since the launch of its oldest share class (in USD), it has realised an annualised return of 8.61%. The SR Share Class is also included on the CPF-IS list and is the only Fund of its kind for CPF-investors who seek long term income and capital appreciation. It is an Luxembourg domiciled UCITS fund which is more tax efficient and it is denominated in Singapore dollars to make it an FX efficient portfolio for Singapore based investors matching your assets with your future liabilities and thereby removing unnecessary FX risk and cost.

Updated by Endowus: 24 Sept 2020 

** Disclaimer
Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.

The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.