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Technology Stocks

TCS sees softer results than expected as it focuses on margin expansion

While in many regards there’s an uncanny resemblance between Tata and its India IT services’ competitors-Wipro and Infosys–such as in its offerings, offshore leverage mix (near 75%) or attrition rates (near 15%)-Tata stands out in regards to its scale. The company’s revenue is 1.6 times and 2.6 times greater than Infosys and Wipro, respectively, and this has its benefits.

While TCS’ best-in-industry attrition rate of 11.9% did not give the company, the extra boost needed to expand margins over this quarter as it is expected to lower in subsequent quarters and pay off in the future. It confirms that TCS is the best-of-breed Indian IT services firm. TCS’ status allows the company to attract and maintain India’s top talent, even amid fair competitors, such as moaty Infosys and Wipro.

It is estimated that TCS will grow at the compounded annual growth rate of 11%. This growth will be majorly driven by overall increased spend on IT services by enterprises as the IT landscape becomes more complex than ever and enterprises increasingly realize competitive edge in their products or services is distinguished foremost by their technological abilities.

Financial Strength:

Tata’s financial health is in very good shape. Tata had INR 356 billion in cash and cash equivalents as of March 2020 with zero debt, which has allowed Tata to feed significant payout to its shareholder base. Over fiscal 2014 through fiscal 2018, Tata’s average payout of its free cash flow to shareholders was 64%.

It is forecasted Tata’s dividend to grow to at least INR 53 per share in 2025 from INR 33 per share in 2020, which maintains the company’s 38% dividend payout ratio. It is expected that acquisitions over the next five years will continue to be moderate, at INR 350 million each year.

Analysts expect that Tata will fare in 2022 assuming revenue growth of nearly 18% as a result of a strong recovery from effects of COVID-19, followed by top-line growth of 11% in fiscal 2023 and long-term midcycle growth near 9% per year thereafter.

Bulls Say:

  • Tata should benefit from greater margin expansion than expected in our base case as more automated tech solutions decrease the variable costs associated with each incremental sale. 
  • Tata should profit from a wave of demand for more flexible IT infrastructures following the COVID-19 pandemic, as more companies seek to be prepared with the onset of similar events. 
  • As the European market becomes more comfortable with outsourcing their IT workloads offshore, Tata should expand their market share in the growing geo.

Company Profile:

Tata Consultancy Services is a leading global IT services provider, with nearly 450,000 employees. Based in Mumbai, the India IT services firm leverages its offshore outsourcing model to derive half of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services, and cloud infrastructure services as well as business process outsourcing as a service, or BPaaS.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Shares Technology Stocks

Marvell taking aim at cloud, 5G and automotive markets

Between data processing units, or DPUs, optical interconnect, and ethernet solutions, Marvell has one of the broadest networking silicon portfolios in the world, and we think it is primed to steal market share from incumbent Broadcom with bleeding-edge technology.

Marvell has exited its low-margin legacy markets of consumer hard disk drives and Wi-Fi chipsets to focus on its networking portfolio and used the acquisitions of Cavium, Avera, Aquantia, Inphi, and Innovium to expand out of its enterprise market niche into the rapidly growing data center and 5G markets.

Marvell’s recent financial history has been choppy as a result of CEO Matt Murphy’s aggressive overhaul of the business’ focus. Trends toward disaggregated networks and merchant silicon, as well as 5G and data center buildouts, would act as secular tailwinds for Marvell.

Financial Strength:

As of May 1, 2021, the firm carried $522 million in cash and $4.7 billion in total debt—largely taken on to acquire Inphi. Marvell is expected to exit fiscal 2022 with a gross debt/adjusted EBITDA ratio of 2.4 times, above its target of 2 times. As per the analysts, Marvell is expected to stay leveraged but to pay down debt as it matures.

The firm’s free cash flow generation is expected to ramp up toward $2 billion a year by fiscal 2026, up from just over $700 million in fiscal 2021, as it exacts material operating leverage with top-line growth.

The firm would be prudent to postpone any M&A until it returns below its debt/EBITDA target, following $11 billion spent so far in fiscal 2022 on Inphi and Innovium.

Bulls Say:

  • Marvell has best-of-breed data processing units and optical interconnect products that should allow it to benefit from the rapidly growing cloud and 5G markets.
  • We think the combination of Inphi and Innovium under the Marvell umbrella could give it a technological advantage to Broadcom in high-performance networking.
  • We expect Marvell to exact significant operating leverage as it incorporates acquisitions and adds volume to the top line.

Company Profile:

Marvell Technology is a leading fabless chipmaker focused on networking and storage applications. Marvell serves the data center, carrier, enterprise, automotive, and consumer end markets with processors, optical

interconnections, application-specific integrated circuits (ASICs), and merchant silicon for ethernet applications. The firm is an active acquirer, with five large acquisitions since 2017 helping it pivot out of legacy consumer applications to focus on the cloud and 5G markets.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Shares Small Cap

Praemium Ltd balance sheet remains strong with cash reserves of $26.7m

Businesswoman pointing at diagram in her hands when explaining marketing trends to her team during online meeting

Investment Thesis

  • Merger with powerwrap creates a much better capitalized and resourced competitor in the market, with significant opportunities for synergies.
  • Increase diversification via geography and product offering.
  • Increase competition amongst platform providers such as HUB24, Wealth O2, BT panorama, Netwealth, North Platform, etc.
  • Very attractive Australian industry dynamics – Australian superannuation assets expected to grow at 8.1% p.a to A$9.5 trillion by 2035.
  • Disruptive technology and hold a leading position to grow funds under advice via SMAs.
  • The fallout from the Royal Commission into Australian banking has led to increased inquiries for PPS’ product/services.
  • Growing and maturing SMSF market = more SMSF demand for tailored and specific solutions.
  • Both-on acquisitions to supplement organic growth.
  • Further consolidation in the sector could benefit PPS.

Key Risks

  • Execution risk – delivering on PPS’s strategy or acquisition.
  • Contract or key client loss.
  • Competitive platform/offering.
  • Associated risks in relation to system, technology and software.
  • Operational risks related to service levels and the potential for breaches.
  • Regulatory changes within the wealth management industry.
  • Increased competition from major banks and financial institutions.

FY21 Results Summary

  • Australian business segment delivered revenue growth of +37% over pcp to $53.1m, driven by Platform revenue increase of+73% to $36.5m with Powerwrap revenue of $16.3m amid strong underlying growth from record platform inflows and Portfolio services revenue increase of +6% to $16.1m with VMAAS revenue up +40% from continued portfolio on-boarding. EBITDA declined -2% to $19m, primarily due to the transition of the Powerwrap cost base and some cost expansion to support growth and service across sales, marketing and operations (EBITDA margins declined -14% to 36%), however, management forecast growth investments and scale benefits from Powerwrap synergies will drive improved earnings into FY22.
  • International net revenue (net of product commissions) increased +6% over pcp to $12.5m, driven by Platform revenue growth of +30% to $8.1m from record inflows driving International platform FUA to $5bn (up+ 55%), partially offset by declines in the Smartfund range of managed funds, with fund revenue down -47% to $1.5m. Expenses were up +2% to $16.4m from operational capability to support growth, partially offset by continued cost management. EBITDA loss declined -7% to $3.9m, comprising UK’s EBITDA loss of $1.4m (27% improvement), Asia’s EBITDA loss of $0.9m (1% increase) and the inclusion of Dubai’s cost centre of $1.6m (up 17%).

Company Profile 

Praemium Limited (PPS) is an Australian fintech company which provides portfolio administration, investment platforms and financial planning tools to the wealth management industry.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Shares Technology Stocks

Megaport retained strong balance sheet position, with a cash balance of $136.3m at year-end

Graphic of investment stock market data analysis business

Investment Thesis

  • MP1 is a global Software Defined Network provider, focusing on cloud connectivity. As such, the Company is leveraged to the rapidly growth of global cloud and data centres and is in a strong position to benefit from the rollout to new cloud and data centre regions. Key macro tailwinds behind MP1’s sector: (1)  adoption of cloud by new enterprises; (2) increased level of investment and expenditure by existing customers; and (3) more and more enterprises looking to use multiple cloud  products/providers, which works well with MP1’s business model.
  • MP1 has a scale advantage over competitors. MP1 is over 600 locations around the globe. MP1 has significant scale advantage over competitors and whilst replicating this scale is not necessarily the difficult task, it will take a number of years to do so during which time MP1 will continue to add locations and customers using the scale advantage.
  • Strong R&D program ensuring MP1 remains ahead of competitors. 
  • Strong cash balance of $136.3m at year end and a reducing cash burn profile puts the Company in a strong position.
  • Strong relationship with data centres (DC). MP1 has equipment installed in 400 data centres, so MP1 is a customer of data centres. MP1 also drives DCs interconnection revenue. Whilst several data centres like NEXTDC, Equinix provide SDN (Software Defined Network) services, it is unlikely data centres will look to change their relationship with (or restrict) MP1 given they are designed to be neutral providers to network operators. Further, given MP1’s existing customer base and connections with cloud service providers, it would be very difficult for data centres (without significant disruption to customers/cloud service providers) to change the rules for MP1.

Key Risks

  • High level of execution risk (especially with respect to development). 
  • Revenue, cost and product synergies fail to eventuate from the InnovoEdge acquisition. 
  • Heavy reliance on third party partners (especially data centre providers and cloud service providers) 
  • Data centres like NEXTDC, Equinix provide SDN services and decide to restrict MP1 in providing their services. 
  • Disappointing growth (in terms of expanding data centre footprint, customers, ports, Megaport Cloud Router).

Company Profile 

Megaport Ltd (MP1) is a software-based elastic connectivity provider – that is, it is a global Network as a Service (NaaS) provider. MP1 develops an elastic connectivity platform providing customers interconnectivity and flexibility between other networks and cloud providers connected to the platform.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
ETFs ETFs

Vanguard Diversified Growth Index ETF: A Diversified fund at low cost

Investment Objective

Vanguard Diversified Growth Index ETF seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax.

Process

The Vanguard Diversified Index ETF series follows the investment process of the unlisted funds, but with some additional trade-offs of the listed structure, including brokerage costs and variable bid-ask spreads. The methodology starts by defining reasonable investment horizons for each portfolio and allocates to broad asset-class exposures such as equities and fixed interest based on the defensive/growth split. Then, sub asset allocation within classes follows a market-cap weighting approach, while allowing for behavioural biases and regulatory factors specific to each local market. The SAA determination is aided by the Vanguard Capital Markets Model, which forecasts asset-class returns through scenario analysis. An annual review may identify major structural shifts that can lead to a revised SAA.Underlying sector exposures are realised through in-house index-tracking funds. 

Portfolio

Vanguard’s straightforward approach applies a strategic asset allocation that is updated periodically and broadly mirrors its equivalent unlisted fund range. Dynamic and tactical asset allocation are not used. Vanguard sticks to the traditional asset classes of equities, fixed interest, and cash, while avoiding alternatives and unlisted assets. The four diversified options are designed to suit different investor objectives and risk profiles. Vanguard Conservative has a defensive/growth split of 70/30, Balanced is 50/50, Growth is 30/70, and High Growth is 10/90. 

Performance

 In comparison to unlisted peers, all ETFs sit in the top quartile over a trailing three-year time period as at June 2021.

Performance return (%)

Source: Fact Sheet

Asset Allocation(%)

Source: Fact sheet

About the fund

The ETF gives investors low-cost access to a variety of sector funds, allowing them to diversify across several asset classes. The Growth ETF is a growth-oriented exchange-traded fund (ETF) created for investors seeking long-term capital growth. A 30% allocation to income asset classes and a 70% allocation to growth asset classes are the goals of the ETF and suitable to buy and hold investors seeking long term capital growth, but requiring some diversification benefits of fixed income to reduce volatility.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Funds Funds

Pendal Sustainable Conservative Fund: An effective asset allocated fund with ESG overlay

It is noted that the investors would be comfortable as the ESG considerations mirror with those of the Manager’s approach- the strategy does not invest in tobacco or weapons manufacturing as well as the Fund has negative screens (alcohol, gaming, pornography) with activities materiality caveat. The fund utilises internal as well as external fund managers in order to make effective decisions while allocating its assets. The fund size is $345m.            

Downside Risks:

  • ESG breaches by investments in the portfolio.
  • Underlying managers fail to deliver performance or breach mandates.  
  • Personnel change – turnover in the team or portfolio managers. 
  • Broader market risk.

Fund Performance & Current Positioning:

(%)FundBenchmarkOut-performance
1-month 1.07%0.74%+0.33%
3-months 3.62%3.09%+0.53%
6-months8.17%5.89%+2.28%
1-year 9.46%7.40%+2.06%
3-year (p.a.)4.82%5.28%-0.46%
5-year (p.a.)4.10%4.76%-0.66%
Since Inception (p.a.)+7.15%+3.86%+3.29%

(Source: Pendal; Past performance is not an indicator of future performance)

Fund Positioning:

 % of Portfolio
Australian shares9.0%
International shares13.0%
Australian fixed interest17.2%
International fixed interest16.2%
Australian property securities3.4%
International property securities 3.1%
Alternative investments15.9%

(Source: Pendal)

Key Highlights:

  • Investment Team:

The Pendal Multi-Asset team is headed by the very experienced Michael Blayney. The team is made up of 4 members- 3 Portfolio Managers and 1 Analyst. The team is also supported by Edwina Matthews who is Pendal’s Head of Responsible Investments.

  • Investment Philosophy and Process:

The Fund’s core belief is that markets are inefficient, and that active management can improve risk and return. The process basically consists of three approaches namely; Strategic Asset Allocation Approach (SAA), Environmental, Social and Governance (ESG) integration and construction of benchmark using neutral’s asset allocation position and index returns.

About the Fund:

The Fund is an actively managed multi-asset portfolio across a range of asset classes and incorporates a range of sustainable, ethical and financial considerations. The strategy aims to provide real return over inflation over the medium term. The strategy’s neutral target asset allocation is 75% defensive assets and 25% growth assets, which is suitable for ESG focused conservative investors.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Funds Funds

The Fund provides investors an opportunity to diversify and distil grow

the portion of return attributed to the S&P/ASX 20 Leaders Index, by 4% p.a. after fees on a rolling 3-year basis. The Fund invests primarily in Australian shares with high quality business models, strong growth, and underestimated earnings momentum and prospects.

Portfolio 

This strategy looks very different from the S&P/ASX Small Ordinaries Index. First, it has traditionally held a significant stake in midsize and larger companies excluding the top 20.Bennelong believes it can capitalise on mispricing through superior fundamental research. The pronounced growth leaning also contributes to this vehicle’s differentiated look. It has traditionally led to an (unsurprising) aversion to the property trust, consumer staples, and utilities sectors. That said, A-REITs have featured on occasion, such as in mid-2019. Consumer discretionary, technology, and healthcare stocks are typically favoured, the attraction being both cyclical and structural growth. This is usually the source of the portfolio appearing expensive relative to the benchmark and peers. The search for growth can lead to mistakes; in such events, liquidity in small-cap names can reduce nimbleness for this strategy given its large asset base. The team is not averse to altering large positions quickly when its view on earnings growth changes. For instance, in early 2021, Bennelong cut the 10% allocation in Afterpay when business execution disappointed and competition increased. This fund is best used in a supporting player role. The firm manages around AUD 8.8 billion, including AUD 4.6 billion in this strategy as of 30 April 2021.

Performance 

The long-term performance at Bennelong is strong. Given the strategy excludes the 20 largest Australian companies, the portfolio has a larger-cap feel than more-dedicated small-cap offerings. As a result, performance comparisons against its equity Australia mid/small-growth Morningstar Category peers should be undertaken cautiously. Bennelong outdid the index and most peers during 2015 and the first half of 2016 thanks to such positions as Domino’s and Aristocrat Leisure. The second half of 2016 was a stumble for Bennelong (and many peers), as resources and value stocks outperformed. The following two years saw it ride the highs of stocks like Treasury Wine Estates, Costa Group, and BWX only to abruptly see their share prices plummet contributing to middling years of performance. Mark East cut the first two names but held BWX as better fundamentals were expected. More recently, 2019 delivered average returns, as Corporate Travel Management detracted while Goodman Group added significant value as investors supported its industrial real estate exposure. However, longtime holdings in James Hardie, IDP Education, and Domino’s delivered in spades in 2020 as the market sought quality growth companies and the fund blazed past both the index and peers. Together with Fisher & Paykel healthcare, Bennelong has continued its outstanding run into the first half of 2021.

Source: Mornigstar

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Fixed Income Fixed Income

Fund provides a solid offering to those clients seeking to manage their Fixed Interest

ESG screens and bottom-up fundamental analysis. The ESG philosophy is based on the view that sustainability and/or ethical screens improve the quality and robustness of the portfolio. This is because companies scoring high on Environmental, Social and Governance (ESG) dimensions will likely have lower systematic risks and regulatory risks from adverse ESG events. The Fund aims to exceed the benchmark returns (before fees and expenses) by 0.75% p.a. over rolling 3-year.      

Opinion

  • Well respected Fixed Interest team and experienced Portfolio Managers. The Pendal Income and Fixed Interest team is well resourced and led by the well-respected Vimal Gor, who is Head of Income and Fixed Interest at Pendal. The strategy is managed by Portfolio Manager George Bishay and Co-PM Timothy Hext, both with extensive experience in fixed interest markets. In terms of sustainable philosophy and screening processes, Edwina Matthew (Head of Responsible Investments) assists the team.
  • Access to inhouse equity research team adds competitive advantage to bottom-up fundamental research on issuers. Bottom fundamental research on issuers and financial modelling to identify investment opportunities and avoiding deteriorating credits. Access to the Pendal Australian Equities team and CreditSights, a third-party global research house, are important components in the process
  • Economic + Market + Technical models. The Manager feels their competitive edge comes from focusing on economic quant models, market quant models and technical models within a global context which help determine future direction of markets. These factors working in tandem and then the overlay ESG screens leads, in the manager’s view, a far superior portfolio composition   

Investment Philosophy 

Philosophy. The Fund’s core belief is that markets are inefficient, and that active management can improve risk and return. The ESG philosophy is based on the view that sustainability and/or ethical screens improve the quality and robustness of the portfolio. This is because companies scoring high on Environmental, Social and Governance (ESG) dimensions will likely have lower systematic risks and regulatory risks from adverse ESG events.

Portfolio Construction

The portfolio construction process is driven by the output from the macro input stage (top-down view on duration and yield curve), credit spreads and sector allocations (government vs credit, sector over/under weights within credit (defensive versus cyclical sectors). The portfolio construction process also gives considerations for correlation with existing securities, issuer/sector diversification, concentration, position sizing, liquidity, hedging, tracking error, and valuation.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
ETFs ETFs

iShares USD Corporate Bond UCITS ETF: An interesting proposition to gain exposure

The ultimate result is that this allows managers to decide on the portfolio that represents the index’s overall risk profile, while allowing the ETF manager to avoid purchasing bonds that suffer from illiquidity. The management process is highly automated, and managers use proprietary analytical and risk control systems. The key objective is to minimise trading costs, mainly around primary market events (for example, auctions) that cause rebalancing. All trading is executed by the in-house capital markets desk. Bond coupons are reinvested in line with index rules.

Portfolio:

The Markit iBoxx USD Liquid Investment Grade Index measures the performance of the most liquid USD denominated corporate bonds with investment-grade ratings and minimum remaining life of 3 years by issuers from developed countries. To be considered for inclusion, bonds must have a minimum remaining maturity of 3.5 years and a minimum outstanding of USD 750 million. In addition, the index also requires a minimum outstanding of USD 2 billion per issuer. The index is weighted by market capitalisation, subject to an issuer overall cap of 3%.

People:

The strategy is managed by the EMEA core portfolio management team. Sid Swaminathan is the head of the core portfolio management team. This is a large team where portfolio managers specialise in two broad groupings, one focusing on rates and inflation strategies and the other on credit and aggregate funds. The portfolio managers are supported by a large team of analysts and IT professionals, as well as by the global capital markets team.

Performance:

The strategy has delivered returns above the category average in short and long periods over the past 15 years both on a total and risk-adjusted basis. The strategy struggled during the worst of the coronavirus sell-off in March 2020, but it rebounded strongly once the US Federal Reserve cut interest rates from 1.50% to just above 0.00% and started buying corporate-bond ETFs.

The annualized performance (%USD) displayed by this fund as on 31st August, 2021 has been shown below:

(Source: Factsheet from iShares.com)

Price:

The fees levied by the share class is in the cheap category. Analysts expect that this share class will be able to generate positive alpha relative to the category benchmark index, which affirms the outperformance of this ETF.


(Source: Factsheet from iShares.com)                                                       (Source: Morningstar)

(Source: Morningstar)

About ETF:

iShares USD Corporate Bond ETF tracks an index that excludes bonds with maturity below three years, which account for up to 20% of the investable universe. This causes the strategy to have higher duration than all-maturity passive alternatives. This can work both in favour and against investors depending on the path of interest rates. The strategy is expected to deliver returns over a full market cycle; that is inclusive of periods of both rising and falling interest rates. Considering the benefits of low fees and the broad diversification at the sector level, the strategy retains a Morningstar Analyst Rating of Bronze. iShares’ passive bond fund management process and the high level of expertise of the people behind it showcases a positive view of the ETF.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Funds Funds

Fidelity Australian Opportunities Tenured stock-picker with a unique approach

Approach 

Fidelity analysts use a variety of proprietary models and valuation methodologies to assess earnings, cash flows, and value. Site visits and extensive company management meetings play a critical role in the investment process, as fidelity believes these provide valuable insights into a company’s future prospects.  Each investment analyst covers around 25 companies, grouped along sector lines but sectors are rotated every three to four years. The overall portfolio tends to exhibit a growth bais. 

Portfolio

Fidelity Australian Opportunities is an all-cap domestically focused approach. The portfolio typically holds 40 – 70 stocks with core holdings in large-cap names but a longer portfolio tail of small-cap names. As a result, the average market cap slightly lower than other large-cap peers and around 50-55% of the portfolio sits in the top 10. This means active share hover around 45-50%. Positioning is aligned with a long term view of companies, and the historical average annual turnover has been moderate at about 30-50%, which will also make it reasonably tax effective.

People

Howitt was promoted to portfolio manger soon after joining fidelity in 2004 as an analyst covering banks, insurers and diversified financials. Prior to fidelity, she was an analyst/portfolio manager in AMP capital’s value team and also worked as an consultant with the Boston Consulting Group. Support comes from a wide range of local and global sources, including the Sydney based investment research team and the implementation of an assistant portfolio manager. Each analyst coverage responsibilities for a specific sector and these rotate every three to four year to ensure the analysts continued to produce well rounded insights. 

Performance 

Fidelity Australian Opportunities continues to impress long-term track records. The year 2018 was more Tricky, as positions in blue sky and Lynas materially detracted. The strategy responded well in 2019 as Lynas recovered, while CSL and Wisetech continued their strong appreciation. Despite the volatile markets during calendar 2020, performance was particularly strong, beating the benchmark and most peers. The sector Neutral-Approach protected capital on the downside, with the strong showings from Lynas, Mineral Resources, and BlueScope. Despite no significant sector bets, positions in the materials sector played a key role in the Outperformance, with Howitt’s stock picking talents on full display.

FAO Fund Performance .png
FAO Top Holidings .png

About the Fund

Fidelity Australian Opportunities continues to impress with its quality management and unique approach, bolstered by the firm’s global footprint and top-tier research capabilities. Despite the numerous benefits that come with size and scale, the large footprint of the Fidelity group does create limitations for portfolio construction. Where the firms owns 10% of a company, strategies under the fidelity banner can no longer invest in the stock, though it’s a small price to pay for fidelity’s resources. An adaptive process and tenured portfolio manager set the strategy apart, offering an solid choice for diversified exposure to Australian equities.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.