Fidelity Australian Equities Fund

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100056-2023-07-28-10:41.pdf
FUND MANAGER Fidelity International
ASX Code
INVESTMENT STYLE Invests in a diversified selection of around 30 to 50 Australian companies. Using a bottom-up stock-selection approach that focuses on undiscovered earnings potential, value and growth and is designed to be a core holding.
INVESTMENT PROFILE Investment return objective is to achieve returns in excess of the Benchmark over the suggested minimum investment time period of five to seven years.
BENCHMARK S&P/ASX 200 Accumulation Index
FUND SIZE S&P/ASX 200 Accumulation Index
FEES 0.85% p.a.



Benefits of investing in the Fidelity Australian Equities Fund

The Fidelity Australian Equities Fund is an actively managed portfolio of Australian shares. Some of the features of the Fund include:

  • Access to an actively managed portfolio of listed Australian shares.
  • An investment approach driven by fundamental research that favours companies with superior management,  a competitive edge, sound balance sheet, strong free cash flow and low gearing.
  • The ability for the portfolio manager to call on the research of a dedicated team of Australian analysts based in Sydney and regional analysts based around the world from where Australian companies operating in global industries are analysed.

Significant benefits

Some of the benefits that may arise from an investment in  the Fund include:

  • Potential to earn higher returns than the Fund's benchmark, the S&P/ASX 200 Accumulation Index, over the suggested timeframe.
  • Access to a bottom-up, professionally managed core portfolio of Australian shares.
  • Access to the investment knowledge and expertise of Fidelity's global network of investment professionals who can assess Australian companies in a global context.
  • Access to a portfolio of shares that may provide regular income distributions.
  • Regular investment statements and an annual tax statement to keep you up to date on your investment.

Risk level: High

The potential for loss and unit price variability over the short term is high.

The Fund is suitable for Investors looking for a core Australian equities investment who have a tolerance for a high amount of risk.




Key Features

What will we invest your money in?

The Fund may invest in a variety of shares, derivatives and cash. The Fund's investments will comprise between 90% to 100% of listed Australian shares, with the remaining amount invested in cash.

Decisions to invest cash will be dependent upon the availability of other favourable investment opportunities.

We may make use of derivatives, such as futures contracts and swaps.

A derivative is a security whose price or value is dependent upon or derived from an underlying instrument (such as shares, indices, interest rates, fixed income securities, commodities, currencies, etc). A derivative contract is a contract between two or more parties and its value is determined by fluctuations in the underlying asset.

Generally, derivatives will be used for cash flow management purposes within the Fund. Any derivative exposure must be fully covered by cash or assets sufficient to meet any obligation that could arise.

If derivatives are used, they will comprise a small portion of the Fund's assets.


How we invest your money

Fidelity believes that markets are semi-efficient and share prices don't always reflect inherent value.

Through in-house, bottom-up company research, Fidelity aims to uncover the opportunities that it believes offer the greatest scope for outperformance.

Based on this research approach, Fidelity seeks out stocks that it believes are undervalued and likely  to generate growth.

The companies selected for the portfolio must demonstrate good management, strong competitive advantages and enjoy favourable industry dynamics.

Asset classes and ranges

Australian shares: 90% to 100%

Cash: 0% to 10%