Investors benefit from biggest growth since GFC

fidelity/funds/ASX200/growth/

8 November 2017
| By Oksana Patron |
image
image image
expand image

With the Australian Securities Exchange (ASX)200 breaking through 6,000 points, investors are enjoying the buoyancy in markets which is a result of the most benign global growth environment since the Global Financial Crisis (GFC), according to Fidelity Australian Opportunities Fund.

“We are witnessing the first period of synchronised global growth in a decade,” the fund’s portfolio manager, Kate Howitt, said.

She noted that following the GFC, the ASX200 more than halved in value from its 2007 highs and that it was “a long, slow recovery back to 6000”, a barrier which was broken on Tuesday.

“However, it’s important to remember that this goldilocks scenario where markets continue to grow supported by loose monetary policy cannot last forever,” she said.

“Either growth will roll over or central banks will take the punchbowl away by normalising monetary policy.

“In that environment, investors will increasingly need to identify those stocks that offer structural growth even in a more challenging environment.”

According to FE Analytics’ data, the Fidelity Australian Opportunities Fund, which has $77.17 million in funds under management, delivered annualised performance as of October 31 of 13.41 per cent for the past five years and 11.67 per cent and 19.72 per cent for three years and one year, respectively.

The fund’s objective is to achieve returns (before fees, costs and taxes) that exceeds the S&P/ASX 200 Accumulation Index over a period of five to seven years.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

2 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 2 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5