The most innovative stocks at the forefront of ESG investing have seen their share prices rise by up to 10 times over the last two years, prompting talk of an ESG bubble. Yet, a broader group of less well-owned ESG stocks trade at only a modest premium. Jamie Harvey, portfolio manager of the Fidelity Sustainable Global Equity Fund highlights the growing opportunities in these under-appreciated stocks that offer significantly higher quality and growth prospects.
Coordinated intervention and hawkish BOJ signals have stabilised the Japanese yen, but sustained strength depends on fiscal credibility and tighter monetary policy.
While domestic consumption of sustainable products remains nascent, Victoria Mio, Director of Asian equities, discusses why China’s exporters are tapping into demand for ‘green’ goods from consumers and businesses around the world.
The medium-term outlook for the current cycle remains healthy and supportive for equity markets. However, there are several near-term risks. Short-term growth momentum is slowing, key central banks are moving towards faster policy normalisation, and there is another wave of Covid-19 forming.
With geopolitical uncertainty elevated and global equity markets concentrated around technology and AI, equity income can play a valuable defensive role in investor portfolios today. Portfolio manager Tristan Purcell outlines the attributes we look for in companies in order to construct portfolios with the potential to provide resilience during turbulent times, while also capturing equity market upside.
Risk assets have been supported during 2021 as five key tailwinds peaked, although Fidelity MoneyBuilder Income and Short Dated Corporate Bond portfolio managers Sajiv Vaid and Kris Atkinson believe each of these will trend down as we head into 2022. Against this backdrop, high-quality corporate bonds should offer an attractive prospect for investors looking for a combination of income and safety.
Sometimes you have to go to the mountain to get the answers you need.
Fidelity Asia Pacific Opportunities portfolio manager Anthony Srom explains why caution and selectivity will be key for 2022. He gives his investment outlook for the region and outlines the pockets of the market which he believes offer attractive upside potential for discerning stock pickers.
| The Fed left rates unchanged at 3.50–3.75 per cent in line with the market consensus and going against the roughly one-in-three chance of a surprise hike priced into the meeting. |
Since its launch in 2020, Solana has emerged as a leader in the digital assets space, providing a high-performance blockchain capable of supporting a wide range of scalable decentralised applications. For investors looking to find out more about Solana, this Fidelity Digital Assets “Coin Report” provides a useful overview of its potential strengths and weaknesses.
Sam Morse and Marcel Stötzel, portfolio managers of the Fidelity European Fund and Fidelity European Trust PLC, outline why they believe Europe could be at the forefront of the next decade of innovation, and why this creates significant opportunities for patient, long-term investors who are will willing to back European innovation and benefit from the leaders of the next decade.
As media headlines focus on China’s evolving regulatory environment, we take a step back and focus on the opportunity set across the broader region. Our investment team debate the outlook and discuss the key factors shaping the economic and investment landscape across India and the ASEAN region.
UK equities continue to trade at attractive valuations despite an improving market backdrop. At the same time, artificial intelligence is reshaping industries and business models, reinforcing the importance of disciplined stock selection and careful attention to valuation. Here, Alex Wright, Portfolio Manager of Fidelity Special Situations and Special Values, discusses where he continues to find opportunities across the UK market.
Alex Wright, portfolio manager of Fidelity Special Situations & Fidelity Special Values PLC, outlines why he remains excited by the opportunities on offer in the UK despite recent market volatility. Within this, he highlights the improving outlook for corporate earnings and profits, particularly among domestic stocks and sectors that were hit disproportionately hard by Brexit and the pandemic.
Fidelity’s Global CIOs debate the outlook for financial markets as we enter the final quarter of 2021. They highlight the key factors we are watching, with a focus on inflation, central bank policy moves and the evolving regulatory environment in China.
Property developer China Evergrande Group’s debt problems have rattled global financial markets. But Fidelity’s Asia Pacific CIO Paras Anand believes comparisons likening this to a ‘Lehman moment’ for China appear overstated, with the Chinese authorities focused on managing long-term economic and societal risks.
UK fixed income portfolio managers Sajiv Vaid and Kris Atkinson review the opportunity set in corporate credit - and highlight why fixed income investors should be cautious of underweighting duration and reaching for yield in the current environment.
While the UK market has looked cheap for some time, the key difference in 2021 is that fundamentals are now improving. Jonathan Winton, lead portfolio manager of Fidelity UK Smaller Companies and co-portfolio manager of Fidelity Special Situations & Fidelity Special Values PLC, discusses how this backdrop is driving a spate of M&A bids which could act as effective catalysts to close long-standing valuation discounts.
Sam Morse and Marcel Stötzel, portfolio managers of the Fidelity European Fund and Fidelity European Trust PLC, review the outlook for continental European equity markets. Following a period of strong returns, they discuss why a focus on attractively valued dividend paying stocks is well placed to navigate a backdrop where aggregate valuations are starting to look stretched.
Utilising Fidelity’s Sustainability Ratings, we recently analysed the relationship between sustainability and dividend payments to shareholders. Investment Director Matthew Jennings reveals the key findings, outlining why ESG leaders are more likely to deliver sustainable dividend growth across a range of conditions.