Fidelity Global Technology is a mutual fund that invests in technology companies worldwide for long-term capital growth. The fund is managed by Fidelity International, a global investment management company that provides investment solutions and retirement expertise to institutions, individuals, and their advisers.
As of March 2024, the Fidelity Global Technology fund had total net assets of £12.5 billion and was one of the largest technology-focused mutual funds in the world. The fund invests primarily in large-cap technology stocks, with a focus on growth and innovation. Its top holdings include well-known technology companies such as Apple, Microsoft, and Amazon.
Investing in technology companies has become increasingly popular in recent years, as technology continues to play an important role in our daily lives and the global economy. The Fidelity Global Technology fund offers investors the opportunity to gain exposure to this sector through a diversified portfolio of technology stocks.
Fidelity Global Technology Fund Overview
Investment Strategy
The Fidelity Global Technology Fund is a high-risk, high-reward fund that invests in technology companies around the world. The fund’s investment objective is to achieve long-term capital growth by investing primarily in the equity securities of companies that are involved in the research, design, development, manufacture or distribution of products, processes or services that are technologically advanced or benefit significantly from technological advances.
The fund invests in a diversified portfolio of technology companies across the globe, including both developed and emerging markets. The fund’s investment strategy is to identify companies that have a competitive advantage in their respective markets and that are expected to benefit from long-term secular trends in the technology sector.
Fund Performance
According to Trustnet, the Fidelity Global Technology Fund has delivered strong performance over the past five years, outperforming its benchmark, the MSCI ACWI Information Technology Index, by a significant margin. The fund’s NAV has grown by an average of 18.7% per year over the past five years, compared to the benchmark’s average annual return of 15.4% over the same period.
The fund’s performance has been driven by its exposure to some of the world’s leading technology companies, including Apple, Amazon, and Microsoft. These companies have benefited from strong demand for their products and services, as well as from long-term secular trends such as the shift to cloud computing and the growth of e-commerce.
Management Team
The Fidelity Global Technology Fund is managed by a team of experienced investment professionals led by Hyun Ho Sohn. Mr. Sohn has over 20 years of experience in the investment industry and has been managing the fund since 2018. He is supported by a team of analysts who conduct in-depth research on technology companies around the world.
The fund’s management team has a track record of delivering strong performance and has been recognized for their expertise in the technology sector. In 2021, the team was awarded the Best Global Technology Fund Manager award at the Investment Week Fund Manager of the Year Awards.
Industry Analysis
Market Trends
The technology sector is a rapidly evolving industry that has been experiencing significant growth over the past few years. According to Fidelity’s outlook report, AI is one of the most potentially transformative trends driving the sector, but it is not the only one. The shifts towards cloud computing, digital advertising and ecommerce, big data and the internet of things, and other long-term structural trends have created diverse opportunities across all sectors, industries, and geographies.
Competitive Landscape
The technology sector is highly competitive, with many established players and new entrants vying for market share. As per Fidelity’s Global Technology Fund page, the complex and dynamic technology theme provides diverse opportunities across all sectors, industries, and geographies. Industry structures for existing players have improved, with some emergent competition drying up or being consolidated, creating opportunities for scale players and those embarking on proper, productive restructuring.
Regulatory Environment
The technology sector is subject to various regulatory frameworks that aim to protect consumers and promote fair competition. As per Fidelity’s Singapore analysis and research page, earnings quality will matter more in the future as regulatory scrutiny increases. The regulatory environment is expected to evolve, with new rules and regulations coming into effect to address emerging issues such as data privacy, cybersecurity, and antitrust concerns.
Overall, the technology sector is a dynamic and rapidly evolving industry that offers diverse opportunities for investors. However, investors need to be aware of the risks associated with investing in this sector, such as regulatory uncertainty, intense competition, and rapid technological change.
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