Winners rationale

Underpinned by solid underlying fundamentals, attractive valuations and rising global demand, emerging market (EM) equities outperformed in 2017. The MSCI Emerging Market Index skyrocketed to a 37.3% gain in 2017, versus MSCI World’s 22.4%.

This outperformance was fueled by last year’s close to 10% decline of the US dollar, which provided a favourable external environment, and drove assets to flow from developed to emerging world markets.

In 2017, as EM stocks showed unstoppable momentum, private banking clients in Asia grew interested in EM equities. Given the intrinsic deficiency within the market, actively managed equity funds gained traction among private investors.

Fidelity International, which has been investing in global EM equities since 1993, currently has in the region of US$15 billion in AUM in diversified global emerging market strategies. The EM equities investment team comprises five portfolio managers and 45 analysts, many of whom are based in the developing markets that they cover, and offer abundant local expertise.

One of the firm’s funds, which was highlighted by fund selectors, has outperformed over a multi-year period with stock selection underpinning alpha delivery. In 2017, the fund benefited most from stock picking in the financials and consumer-related sectors.

Additionally, key to its success has been Fidelity International’s dedicated private banking distribution team. The asset manager utilises a ‘globally-coordinated, Asian-focused’ model. It also has a reporting and request for proposal (RFP) support team based in Asia specifically for the private bank business to help deliver efficiency and to enhance client experience.

Gatekeepers noticed these strengths, selecting Fidelity International as this year’s Best Fund Provider – Emerging Market Equity.