Fund Objective

Fidelity Managed International Fund is managed with the aim of providing longterm capital growth from a portfolio of equities from around the world.

View on Past Performance

Over the quarter, the fund underperformed its benchmark. Unlike last quarter, when exposure to energy and metals & mining stocks had buoyed returns, the performance of these holdings proved discouraging. Fears of a global slowdown made investors ignore firm-specific fundamentals. Niko Resources detracted despite the fact that it was exposed to limited commodity price downside, as the Indian government buys its output at a fixed price.Elsewhere, underweights in expensively valued banks JPMorgan Chase and Wells Fargo hurt relative returns, given their potential to acquire assets cheaply. Hedge fund firm Man Group also detracted amid difficult market conditions. However, its funds have a strong track record, a low correlation to equities and carry high redemption fees. In contrast, overweights in key consumer staples and health care firms added value.Household goods firm Energizer and food manufacturer Nestle gained from investors' preference for defensive stocks. The latter implemented successful cost controls.

Fund Details