Important information - the value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

Our latest Wealth Management Investor Forum shone a light on the case for global investing. The evening kicked off with some scene setting from Tom Stevenson, investment director, who provided a mid-year market update.

Tom said that the past year has been kind to investors, with most asset classes performing well, however there are some concerns looming on the minds of investors which he sees as follows.

 

Only one major asset class is under water and that’s the Chinese stock market, everything else has made money for investors, said Tom.

The top end of the scale includes the NIKKEI and the NASDAQ, middle of the pack is the S&P 500, gold and European shares, all of which have delivered impressive returns. Bonds have lagged as they wait for the pivot in interest rates.

“Who in the beginning of 2023 would have predicted that order? The only way to get round this is to diversify,” said Tom.

Meet our Select 50 global fund managers

Next, it was time for the main event, three fund managers came to the stage, including -

  • Dan Roberts, fund manager of the Fidelity Global Dividend fund.
  • James Thomson, fund manager of the Rathbone Global Opportunities fund.
  • Simon Adler, co-fund manager of the Schroder Global Recovery fund.

Why global?

James said that the simple answer is that there are some unmissable opportunities outside of the UK. He mentions businesses like Amazon, Microsoft and Nvidia.

“I’m one for exaggeration at times but I feel very confident in saying Nvidia is a representation of what is the beginning of a new computing generation. It is the largest holding in my fund. Last night, the CEO of Nvidia, the computer is no longer going to be an instruction driven machine, it’s going to be an intention understanding machine.”

As an income investor, Dan said that there are benefits to investing on a global basis.

"If you’re a UK investor look at the makeup of the UK index, it’s very skewed towards financials and commodities and no tech exposure. If you look at the Japanese stock market, it’s very heavy in tech, and industrials, with no consumer staples exposure. With country specific funds, you open yourself to these skews in the relevant benchmark which you can avoid if you have a global remit,” said Dan.

Simon said that as a value investor, the wider you cast your net, the better the catch.

“As a value manager, we’re looking for cheap businesses who are in trouble today that we think can recover. There’s lots of those in the UK but there are lots in Europe, the US and Japan,” said Simon.

Watch the full video below

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Please be aware that past performance is not a reliable guide indicator of future returns. Select 50 is not a personal recommendation to buy funds. Equally, if a fund you own is not on the Select 50, we're not recommending you sell it. You must ensure that any fund you choose to invest in is suitable for your own personal circumstances. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.

Share this article

Latest articles


Tom Stevenson

Tom Stevenson

Fidelity International

This week in the markets: America decides

What’s driving your investments this week?


Tom Stevenson

Tom Stevenson

Fidelity International

Q&A: the new ‘double tax’ on inherited pensions

Tax changes due in 2027 could upend retirement plans


Ed Monk

Ed Monk

Fidelity International