Fidelity Global Dividend Class W - Accumulation (GBP)

Since the fund launched in 2012, its performed better than the average fund in the IA Global Equity Income. That said, returns haven’t kept up with its benchmark - the MSCI AC World Index (MSCI ACWI). That’s true of most global equity income funds which haven’t tended to perform as well as the broader global market in recent years. The US market, particularly the technology sector and other high-growth areas, have performed well. Companies in these parts of the market don’t tend to pay as much in the way of dividends, so many global income funds invest less in these companies.

We believe the fund benefits from the experience of a well-resourced manager and has the potential to deliver good returns for investors over the long term, but this isn’t guaranteed. The fund is likely to lag the broader global market when the US and high-growth sectors are performing well, but the reverse is also true. We expect it to provide more resilient returns when markets are volatile.

Roberts looks for companies that can sustainably grow their dividends over many years. That's more important to him than what a company yields today. He's a reasonably conservative investor and places more importance on sheltering investors' capital than growing it. This means he pays close attention to valuations and doesn’t buy shares at a price he believes is above the company’s future growth potential.

The investment approach focuses on individual company analysis, paying close attention to financial accounts to ensure each company has the ability to pay dividends. Roberts also assesses how a company has fared during different market conditions. He favours companies with simple business models, sensible management teams, and healthy balance sheets, whilst avoiding companies with too much debt.

The fund is made up of 40-60 investments, which tend to be larger companies. While Roberts can invest in higher-risk smaller companies, he doesn’t do so often. The fund is diversified across a number of sectors, with a preference for companies that are less exposed to events in the wider economy.

Note that charges are taken from capital, which can increase the yield but reduces the potential for capital growth. Roberts has the flexibility to use derivatives in this fund, which adds risk if used.