Fidelity

Alex Wright, portfolio manager of Fidelity Special Situations & Fidelity Special Values PLC, outlines why he believes the recent rally in UK value stocks and sectors could be just the start of a sustained longer-term rebound. He looks at what’s driving this shift in market leadership and how his portfolios are positioned to capitalise.

As we move through the second quarter of 2021, the global economic recovery continues apace, although market volatility and ‘mini tantrums’ are testing central bank credibility. Against this evolving market and macroeconomic backdrop, our Global Macro and Strategic Asset Allocation team explain why they are still pro-risk for now and outline their highly selective approach to asset allocation.

Paras Anand, CIO of Asset Management, Asia Pacific, debates the investment outlook for the region. After a strong run in regional markets, he outlines why headline returns could be more modest going forward, with potentially significant shifts in market leadership. How should investors approach this new environment?

With the global economic recovery largely on track, our thoughts are inevitably turning to what the next phase of the cycle will have in store for markets. Against this backdrop, Fidelity Strategic Bond Fund Co-Manager Tim Foster shares his latest views on the evolving opportunity set across fixed income assets, with an eye to sustainability considerations.

EM equities have begun to rally after a protracted period of relative underperformance. Meanwhile, supply constraints, stimulus and a transition to a greener economy lend support to commodities. Fidelity Emerging Markets Fund Manager Nick Price looks at historical correlation of EM equities with commodities, which suggests that the breakout could be sustained.

Paras Anand, CIO of Asset Management, Asia Pacific sets out the case for why growth opportunities in post-pandemic Asia are positioned to propel a long-term boom in equity capital markets. The region continues to draw in ever greater flows from investors starved of returns in global equities and so, with this potential paradigm shift brewing, what’s the case for Asian equities?

The Covid-19 pandemic has accelerated numerous pre-existing macroeconomic trends, including a dramatic rise in global debt. Our global macro and strategic asset allocation team examines the primary driver behind this: fiscal spending to mitigate the effects of the pandemic. We also assess the differing approaches to fiscal policy taken by the US, the European Union and China.

The reflation narrative is gathering steam and many investors are questioning the extent to which the recent back-up in core government bond yields can continue. Against this backdrop, Fidelity Strategic Bond Fund Co-Manager Claudio Ferrarese gives his outlook for rates and outlines the factors which suggest that this may well present a buying opportunity.

Global Head of Macro Salman Ahmed debates the potential for a tantrum in markets due to the risks emanating from fiscal dominance and inflation moving higher. He also looks ahead and considers future central bank intervention and how this could impact returns across asset classes.

Covid-19 has left over 400,000 maritime workers stranded at sea, prohibited from disembarking at port or unable to secure flights home. Find out how more investors are joining our campaign through an open letter to the UN, calling for urgent action to address this humanitarian crisis and preserve the sustainability of global supply chains.

Investors often shy away from complexity, with mergers, acquisitions and spin-offs prime examples. We look at how these areas often create pricing inefficiencies for fundamental investors willing to do the work and outline how the Fidelity Global Special Situations Fund is set up to continue benefit from event-driven opportunities over 2021.

Fidelity Strategic Bond Fund co-portfolio managers Tim Foster and Claudio Ferrarese outline how they have effectively navigated an eventful last 12 months in global fixed income markets. If 2020 was a year of dramatic changes, they also look ahead and discuss why they expect 2021 to be more focussed on alpha and picking the right opportunities.

As China celebrates a new lunar year, Fidelity China Consumer Fund Manager Hyomi Jie looks ahead and assesses whether the Year of the Ox (or Bull) will live up to its name. She discusses whether China will be able to sustain its remarkable post-Covid-19 recovery and outlines why investors need to be on guard against divergent sector performance.

Our health care analyst discusses the wide-ranging approaches taken by countries across the globe to vaccinate their populations and what that might mean for a global recovery - in health and in wealth terms. While China is firing on all cylinders, Israel stands out as the fastest mover among developed markets.

Romain Boscher, Global CIO for equities offers his take on how the global equities picture will unfold in the year ahead. He discusses why he believes earnings will continue to recover but at an uneven pace and answers: will we see a wholesale switch to value investing in 2021?

China’s swift return to “normality” should mean lower risks compared to many developed countries still struggling with the impact of the virus. Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, examines the investment opportunities ahead as selected areas continue to reap benefits from the structural trends accelerated by Covid-19.

Fidelity Global Dividend Fund portfolio manager Dan Roberts sets out the case for focusing on quality and sustainable businesses in 2021. He also discusses how his three key building blocks of returns are likely to shape up in the year ahead.

Around the world consumer behaviour patterns are shifting to online and nowhere is this bigger and more pervasive than in China. Hyomi Jie, portfolio manager of the Fidelity China Consumer Fund, discusses how the digitisation of consumption trends is creating new opportunities and outlines the key trends to watch out for in 2021.