| Fund Company | Fidelity Investments |
| Fund Type | Global Small / Mid Cap Equity |
| Rating | F |
| Style | Value |
| Risk Level | Medium |
| Load Status | Optional |
| RRSP/RRIF Suitability | Fair |
| TFSA Suitability | Fair |
| Manager | Daniel Dupont since October 2011
Joel Tillinghast since January 2012 |
| MER | 2.38% |
| Code | FID 253 – Front End Units
FID 553 – DSC Units |
| Minimum Investment | $500 |
Analysis:After struggling to find their footing with the fund since taking it over in 2011, Joel Tillinghast and Daniel Dupont have really turned things around. They scour the globe looking for companies of any size, operating in any industry, located anywhere in the world.
In managing the fund, they take a medium to long term outlook, and are looking to find high quality, attractively valued stocks that offer what they consider to be an attractive risk reward profile. It is pretty well diversified across company size, with exposure to mega caps, micro caps and everything in between.
The portfolio has a bit of a value bent to it. It is underweight materials, financials and real estate, with overweights the defensive names, particularly consumer and healthcare.
Historically the portfolio turnover in the fund has been very high, averaging above 100% per year, but with the new managers in place, we expect that we will see that decline over time.
Performance certainly looks like it has turned the corner, with a one year gain of 35%, handily outpacing the benchmark and its peer group. Even with the all cap mandate, volatility has been well contained.
I’m encouraged by the turnaround, and have very strong confidence in Daniel Dupont as a manager. My expectation is that we will see a continued improvement in performance, although I doubt we will see another 46% year in 2014. Still, it should continue to outpace most of its peers and do so with less volatility.