Changes to the Fidelity Global Fund Management and Investment ApproachJanuary 19, 2015
Changes to the Fidelity Global Fund Management and Investment Approach
Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the fund listed below, which is established as segregated fund in accordance with the Insurance Companies Act (Canada).
Fidelity has announced that effective November 3, 2014, Jeremy Podger assumed portfolio management responsibilities for the Fidelity Global Fund using a single portfolio structure. Mr. Podger will be solely responsible for all investment decisions going forward.
Mr. Podger utilizes Fidelity's global research capabilities to build the portfolio with a bottom-up, fundamental research approach seeking to identify companies with potential for capital appreciation. The holdings will be categorized into three specific opportunity types: exceptional value, corporate change, and unique businesses.
Under the previous structure, the portfolio held anywhere from 300 to 450 securities. Under the new structure, the portfolio will be significantly more concentrated and will hold anywhere from 70 to 110 securities. The deviations from index weights will also be slightly wider on a regional and sector level.
The fund previously employed a multi-portfolio structure, led by Co-Portfolio Managers Brian Hoesly and Chris Steward, who allocated assets across the four regional portfolios. The regional portfolio managers conducted stock selection within diversified region specific sub-portfolios. Portfolio management responsibilities were as follows: U.S. equities managed by Stephen Balter and Christopher Galizio, emerging market equities managed by John Chow, Canadian equities managed by Joe Overdevest, European equities managed by Peter Hadden and Steve Balter, and Asia Pacific equities managed by Eileen Dibb.
Based in London, U.K., Jeremy Podger joined Fidelity Worldwide Investment in February 2012 and has been managing global equity funds since 1990. He currently manages Fidelity Global Special Situations Fund for investors in the United Kingdom. Before joining Fidelity, Mr. Podger was at Threadneedle, where he was Head of Global Equities since 2003.
Sun Life Financial Comments:
We are concerned with the volume and magnitude of changes in the Fidelity Global Fund's management team, investment philosophy and process over the last few years. We are closely monitoring developments and we will continue to provide you with updates as they become available.
Please contact your Sun Life Group Retirement Services representative.