Fidelity International is renaming the Fidelity Funds - Global Communication Fund to the Fidelity Funds - Future Connectivity Fund, reflecting its increased focus on ‘future connectivity’, a long-term theme transforming how we live and work.
We are living in a golden age of connectivity. The speed, intensity and breadth of communication is rising exponentially. Rich content can now be communicated around the world instantly. People, places and things are becoming increasingly digitalised, causing shifts in consumer behaviour and business activity, both of which are moving from offline to online, and from online to mobile. The advent of the 5G era is further accelerating these trends.
The fund, which is managed by Portfolio Managers Jon Guinness and Sumant Wahi, is a relatively concentrated 35-45 stock portfolio, with high growth characteristics. The Portfolio Managers’ investment process initially looks to identify stocks that fit the three distinct buckets based on the ‘Future Connectivity’ universe:
1. Enablers: Technology companies that provide equipment and devices that power super-fast networks, such as Ericsson.
2. Networks: Telecommunication companies that are owners and operators of connectivity networks. Examples are US firm Verizon; Charter in the US; and Cellnex, a European tower business.
3. Innovators: Internet companies taking advantage of the shift to online and mobile, to provide innovative new applications and services. They are typically internet, new media and gaming companies like Alphabet, Alibaba and Tencent.
Jon Guinness, Portfolio Manager, Fidelity International comments: “The current golden age of connectivity is about faster and cheaper communication, leading to the digitisation of people, places and things, and disruption across all investment sectors. This creates investment opportunities across companies that enable and benefit from this connectivity. Each generation of mobile and fixed communication technology has enabled new and exciting ways to connect. As connectivity technology improves, it impacts every part of the economy – from consumer situations (media, dating, food delivery, gaming), to finance (payments, lending), to industrial applications (Internet of Things, autonomous driving, security).”
Sumant Wahi, Portfolio Manager, Fidelity International, adds: “When I speak to investors and clients, they ask whether they have missed the tech party or if these overvalued stocks are due a correction. We think they’re asking the wrong questions.
“We have travelled though the first internet wave marked by the super platforms becoming global phenomena. The next phase of tech expansion will be a broadening out of user and revenue growth, from a narrow cast of well-known players such as Netflix and Zoom to a more colourful and varied mix of enterprises across multiple industries from Digital health to Online education.
“We are confident that the combination of our subject matter experience, working with Fidelity’s broad and deep research base, investing in a powerful structural growth theme, can deliver very strong long-term returns to investors.”
Over one year the Fidelity Funds - Global Communication Fund has returned +29.2%, outperforming its benchmark, the MSCI ACWI Index, which returned +2.7%.
Press release by Fidelity International
Publié le 15 octobre 2020