Fidelity Global Dividend

Fidelity Global Dividend is a core global income fund that invests in companies which offer a healthy and sustainable dividend yield. The fund aims to pay a regular and growing income itself, while preserving capital. It is unconstrained in terms of where it can invest and may avoid some countries or sectors altogether.

Our opinion

We like the fact that manager Dan Roberts challenges his analysts and allows for intellectual debate. The value investing influence means he is less likely to overpay for a stock, which can help to protect against price falls in down markets. The Fidelity Global Dividend fund is a well-diversified, lower risk fund that may suit investors seeking a stable, and potentially rising, global income.

Fund manager

Dan has been managing the Fidelity Global Dividend fund since its inception in January 2012, having joined Fidelity the previous year. He started his investment career in 2001 and has worked at various groups including M&G, Invesco and Aviva. He is a CFA charterholder and a qualified accountant, following on from his mathematics degree from the University of Warwick. All of his personal equity holdings are in this fund.

Daniel Roberts

The characteristics I seek are well sought after, but a willingness to be contrarian and also patient helps us to find them without having to compromise on valuation.

Daniel RobertsFund manager

Investment process

Dan considers himself a value investor, but not in the typical sense. He wants understandable business models with predictable, resilient returns and is happy to pay a fair price for a good company. For ideas, Dan first screens for these characteristics then goes to the analysts (rather than the analysts coming to him) to debate each company’s potential. His accountancy background lends itself to avoiding complex and opaque businesses. Nearly all stocks will be established dividend-payers before they go into the portfolio.

ESG

ESG - Integrated  

Dan takes an holistic approach to ESG for this fund. He does not explicitly screen the universe for certain industries or characteristics but believes the concept of sustainability is aligned with his fundamental, cash-focused approach. As such, ESG analysis is fully integrated into the risk management element of the process. Much of the fund’s ESG considerations comes from its style, whereby Dan is looking for sustainable returns and enduring competitive advantages which often steer him away from controversial sectors. He also needs companies to have robust governance measures and effective management of the company, including on any social and environmental risks, as a failure to manage these could result in an impact to cashflows further down the line. As such, whilst ESG is not a primary feature, it is borne out in the results of the portfolio, which consistently scores well on both internal assessments and external ratings versus the benchmark.

Risk

Even though the fund invests in mostly larger companies, it is very different to its benchmark. It is quite well diversified, both on a global and sector level. It is typically less volatile than the benchmark and tends to outperform in falling markets. Dan manages risk conservatively, focusing on companies with predictable, consistent cash flows and simple, understandable business models with little or no debt on their balance sheets.

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