Morningstar will cease qualitative research coverage of this strategy on or about 1 September 2022 in order to reallocate our analysts to research other strategies. At that time, the last Morningstar Analyst Rating and this research will be removed. After that date, please discontinue using the research report or former research reports issued by Morningstar on this strategy. We recommend users form their own views on this strategy or obtain financial advice. |
|
A sound investment process and strong management team underpin Fidelity Emerging Asia A-Dis-EUR's Morningstar Medalist Rating of Bronze. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-highest quintile among peers.
The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in liquidity exposure and an overweight in volatility exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy's entire management team changed about three years ago. The strategy's new leadership earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst. |
|