Fidelity Global Technology
This is a core global technology fund with around 80 holdings. It invests in a mixture of the familiar technology mega-caps but also medium-sized and smaller companies as well. At least 50% of the fund’s holdings must be invested in sustainable companies.
Our Opinion
Fund Manager
Expand
Fund Manager
Close
HyunHo Sohn, Lead Manager Hyun Ho Sohn has been the Portfolio Manager of the FF Global Technology Fund since 2013. He began his career at Fidelity in South Korea in 2006 as an industrials research analyst and later moved to Hong Kong to specialize in technology. From 2011 to 2013, he managed the Global Technology Pilot Fund from Fidelity’s London office. Before joining Fidelity, Hyun Ho held various analyst roles at Morgan Stanley and Shinhan Investment Corp. With 18 years of investment experience, Hyun Ho holds a BA from Yonsei University in South Korea and is a CFA Charterholder.
HyunHo Sohn, Lead Manager Hyun Ho Sohn has been the Portfolio Manager of the FF Global Technology Fund since 2013. He began his career at Fidelity in South Korea in 2006 as an industrials research analyst and later moved to Hong Kong to specialize in technology. From 2011 to 2013, he managed the Global Technology Pilot Fund from Fidelity’s London office. Before joining Fidelity, Hyun Ho held various analyst roles at Morgan Stanley and Shinhan Investment Corp. With 18 years of investment experience, Hyun Ho holds a BA from Yonsei University in South Korea and is a CFA Charterholder.
Read More
Risk
Read more
Back
Company Description
Fidelity International is a financial services corporation established in 1969. With offices in more than 20 countries, its product range spans mutual funds, defined contribution pensions, segregated portfolios and multi-manager offerings. Awarded the Elite Equities Provider rating in 2017, 2019 and 2020, Fidelity compensates managers on long-term performance, illustrating its intention to align interests with clients
Fund Performance
Close
Risk
Close
Quote from the Fund Manager
Technology offers unique growth opportunities with a host of interesting product cycles and innovations, it’s a dynamic sector where active investing can generate alpha. The technology sector also screens well on many traditional ESG metrics.
HyunHo Sohn
Lead Manager
Investment process
Fidelity Global Technology holds many of the technology mega-caps but has a bias to small and mid-caps. There are 123 equity research analysts at Fidelity that HyunHo can use to help select stocks for the portfolio. HyunHo may also get ideas from industry conferences, regional fund managers, third-party research or quantitative screens.
Stocks in the portfolio fall into one of three buckets. The first is ‘Growth’, which typically makes up more than 50% of the portfolio. These companies will be long-term structural winners with disruptive technology and will often be expensive. It’s important to have a long-term time horizon with these stocks as they can be volatile.
The second bucket is cyclical companies which typically make up less than 30% of the portfolio. These are found in various sub-sectors and there is a preference for less capital-intensive cyclicals with stronger balance sheets. The investment time horizon for these firms will be short (12-18 months).
The final bucket is ‘Special Situations’, which typically make up less than 30% of the portfolio. These are companies which are either severely undervalued or have an upcoming catalyst.
Stocks are sold for one of four reasons: the stock has reached its price target and a review identifies no further upside; the investment thesis is broken; there is a better opportunity elsewhere; or environmental, social or governance issues (ESG) materially change the investment thesis.
Risk
Like most tech funds, it is naturally underweight the tech mega-caps which individually make up more than 10% of the index. As a result, the fund has a natural bias to mid and small-caps.
The investment committee meets once a month to review the fund’s exposure. There is also a quarterly fund review by the Chief Investment Officer.
ESG
ESG - Integrated
Sustainability analysis is integrated into the investment process. HyunHo conducts a thorough assessment and monitoring of ESG risks and opportunities. A minimum of 50% of the fund’s net assets are invested in securities with sustainable characteristics. Developed market issuers with an ESG rating of AAA-BBB from the MSCI or emerging market issuers with a rating from AAA-BB are deemed sustainable. Where MSCI does not rate a company, Fidelity Sustainable Ratings will undertake their own assessment. The fund excludes companies involved in the production or distribution of cluster munitions and land mines.
Related Insights
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.