Fidelity's Investment Process
Active fund management and diligent research are the cornerstones of Fidelity's approach. Since the company was founded, the hallmark of our money management style has been a commitment to fundamental in-depth research. We apply this principle to all our asset management disciplines.
A peek into Fidelity's long-term global strategic thinking
Fidelity 21st Century Investment Themes Series
Fidelity is renowned for its fundamental bottom-up research into investment opportunities all over the world. However, our thinking does not stop at the company level. Our investment teams also consider the broad macro context in which companies operate. Our 21st Century Investment Themes Series encapsulates this thinking and offers fascinating insights into the big issues likely to shape portfolios in the coming years and decades.
Our investment process
Learning all about the companyFidelity takes pain to learn all about the companies we intend to invest in and continue to monitor developments of companies we have invested in.
Our investment professionals analyse a company beyond the details on paper. We visit their offices and factories to learn about the intricacies of their operations. We also talk to the company's suppliers, distributors and customers to build a three-dimensional view of the company's growth potential.
In addition, our regular interactions with senior management allow us to assess the quality of the management and its long-term strategy. Fidelity has access to decision makers because of our reputation and presence in the market place.
In addition, our regular interactions with senior management allow us to assess the quality of the management and its long-term strategy. Fidelity has access to decision makers because of our reputation and presence in the market place.
Knowing the industryThis is important to understand the competitive landscape, industry growth trends, and supply and demand factors which could have long-term impact on the company's risk and growth profile
Building a high conviction portfolioAll companies will be subjected to the same independent analysis and will be selected only if Fidelity's portfolio managers are fully convinced of its potential.
Why a research driven process?
At Fidelity, we believe that markets are semi-efficient, meaning that markets, sectors and stocks can be overvalued or undervalued at any point in time. Research helps us uncover opportunities, gives us a platform to assess the risks involved and helps us make investment decisions.
How do we manage this process?
Good research requires extensive resources. Fidelity is well-placed in this regard as we are one of the largest investment teams seated globally. Our team of about 900 investment professionals1 across 20 countries analyse more than 95% of the companies on the MSCI World Index.
Research is shared globally across teams and this allows our portfolio managers to tap on the expertise of local insights in managing funds anywhere in the world.
Our intensive research process sets us apart from our competitors, this is why major institutions through to individuals have trusted us to manage over US$260 billion spread across almost 750 funds.
Research is shared globally across teams and this allows our portfolio managers to tap on the expertise of local insights in managing funds anywhere in the world.
Our intensive research process sets us apart from our competitors, this is why major institutions through to individuals have trusted us to manage over US$260 billion spread across almost 750 funds.
1 - Comprises 300 investment professionals within Fidelity and over 600 from affiliated companies.
2 - As at 30 June 2011
2 - As at 30 June 2011