Fidelity Future Leaders Fund

Fidelity Future Leaders Fund
Fund fact sheet Invest now

About this fund

A diversified portfolio of 40-70 small-to mid-cap Australian companies.

Uses a rigorous bottom-up stock selection process that focuses on finding attractively valued companies with strong competitive positioning and sound company management.

A strong emphasis on building a diversified and balanced portfolio that aims to deliver more consistent returns through different market cycles.

 

Why this fund

Seeks to capture Australian large-caps of tomorrow, today.

An actively managed portfolio of 40-70 small to mid-cap Australian shares.

Offers investors a unique approach to portfolio construction which aims to deliver consistent returns through different market cycles.

Meet James Abela: What drives his passion for investing in Australian small and mid-caps

James talks about what drives his passion for investing in Australian small and mid-caps, his investment philosophy, and where he is finding opportunities for the Fund.

Process and philosophy

James Abela, portfolio manager of the Fidelity Future Leaders Fund, talks about how he uncovers the future leaders of tomorrow through the Fund's tried and tested approach.

Key facts

Unit prices (at 20/11/24)
Buy 29.26 / Sell 29.114
Unit price history
Buy/sell spread
0.25%/0.25%

At a glance

Objective
To achieve returns in excess of the S&P/ASX Mid Small Index over the medium to long term.
Benchmark
S&P/ASX Mid Small Index
Management costs1
1.20%
Fund size (at 20/11/24)
A$814.27M
Inception date
22 July 2013
Distribution frequency
Quarterly
Currency
Australian dollar

Unique identifiers

APIR code
FID0026AU
ARSN code
164470606
mFund code
FIL26

Fund manager

James Abela
Sydney

Latest fund update

The Australian Future Leaders Fund had a good year this year, and that continued into the third quarter of 2024.

That was driven by a number of things. Three key ones were Pinnacle, which is capital markets. So that has been quite strong and that has done well. Also Hub and Net Wealth, so the fintech sector and also the resources sector through Evolution Mining gold holding. That has done quite well as well.

Some of the detractors have been companies that delivered weak results, which also led to multiple declines. So things like Audinate and also PWR Holdings have been weaker and also ALQ was weaker during the quarter.

So two observations, valuations have got quite strong in quality and momentum names

but the broadening of the universe is starting to occur in the Australian market. So what I'm doing is now trimming in the quality names that have been very strong performers with now some very high multiples in that universe of quality and moving towards transition names so companies that are self-help, where there is management in control of the earnings outlook and where multiple expansion can occur because there are milestones being delivered by a management team.

That's what I'm moving towards in a market that has got quite expensive and it has been quite a narrow leadership market but that is broadening out.

Want to stay up to date with the latest from the Fidelity Future Leaders Fund?

Join Portfolio Manager James Abela as he provides an update on markets, looks at the main contributors and detractors to Q3 fund performance and how he's positioning the portfolio given his recent market observations.

You can get more information about the Fund's top holdings here.

Performance2

See for yourself how the fund has performed since inception. The chart below represents the value now of $10,000 invested in the Fidelity Future Leaders Fund in July 2013 compared with $10,000 invested in the S&P/ S&P/ASX Mid Small Index.

Chart as at: 31 October 2024

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: S&P/ASX Mid Small Index.

Net returns as at 31 October 2024

Timeframe 1 yr
%
3 yr
% pa
5 yr
% pa
7 yr
% pa
10 yr
% pa
Since inception
(22/07/13) % pa
Fund 39.10 2.43 7.17 9.38 11.23 11.39
Benchmark 25.50 2.58 7.54 7.69 9.41 9.44
Active return 13.60 -0.15 -0.37 1.69 1.82 1.95

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: S&P/ASX Mid Small Index.

Net as at 31 October 2024

1 yr
%
3 yr
% pa
5 yr
% pa
7 yr
% pa
10 yr
% pa
Since inception
(22/07/13) % pa
Total return 39.10 2.43 7.17 9.38 11.23 11.39
Growth 37.96 0.26 5.65 7.59 9.45 9.64
Income 1.15 2.17 1.52 1.79 1.78 1.75

Growth return is the unit price movement on exit to exit basis. Income is expressed as Total Return less growth component.

Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: S&P/ASX Mid Small Index.

DistributionDistribution (CPU)Reinvestment price
30-Sep-240.0000N/A

CPU = cents per unit. The above cash CPU excludes imputation credits and foreign income tax offsets which are non-cash components and are reported in the end of year tax statement. If the Distribution CPU column is 0.0000 it means that nothing was distributed. 

Sectors and holdings

As at 31 October 2024

As at 31 October 2024

% total net assets
CAR GROUP LTD 5.5%
PRO MEDICUS LTD 4.9%
HUB24 LTD 4.7%
FISHER & PAYKEL HEALTHCARE CORP 4.7%
EVOLUTION MINING LTD 4.4%
PINNACLE INVESTMENT MANAGEMENT GROUP LTD 4.4%
JB HI-FI LTD 4.3%
NETWEALTH GROUP LIMITED 4.3%
REA GROUP LTD 4.1%
TECHNOLOGY ONE LIMITED 4.0%

As at 31 October 2024

Fund % Benchmark % Relative %
PINNACLE INVESTMENT MANAGEMENT GROUP LTD 4.4 0.6 3.8
HUB24 LTD 4.7 1.0 3.8
NETWEALTH GROUP LIMITED 4.3 0.6 3.7
FISHER & PAYKEL HEALTHCARE CORP 4.7 1.0 3.7
PRO MEDICUS LTD 4.9 1.9 3.1

As at 31 October 2024

Fund % Benchmark % Relative %
VICINITY CENTRES 0.0 1.5 -1.5
WASHINGTON H SOUL PATTINSON & CO LTD 0.0 1.4 -1.4
ENDEAVOUR GROUP LTD/AUSTRALIA 0.0 1.3 -1.3
BENDIGO AND ADELAIDE BANK LTD 0.0 1.2 -1.2
AMPOL LTD 0.0 1.2 -1.2

Fund ratings3

Organisation Rating / Recommendation
Lonsec
Recommended4
The Lonsec report is only available to financial advisers, please contact us for a copy
Morningstar Silver5
Zenith  Highly Recommended6

This Fund is subject to the risk of stock market fluctuations. Investors accessing the Fund through a master trust or wrap account will also bear any fees charged by the operator of such master trust or wrap account. Any apparent discrepancies in the numbers are due to rounding.

1Management costs and buy/sell spread are current as at the date of publication of this website. These fees may be subject to change in the future.

2Total returns (net) have been calculated using exit prices and take into account the applicable buy/sell spread and are net of Fidelity’s management costs, transactional and operational costs and assumes reinvestment of distributions. No allowance has been made for tax. Returns of more than one year are annualised. The return of capital is not guaranteed. 

3You should refer to respective research houses (and their disclaimers below) to obtain further information about the meaning of the rating and the rating scale. Ratings are only one factor to be taken into account when deciding whether to invest. Ratings are subject to change without notice and may not be regularly updated.  Ratings are current as at date (s) stated below. Fidelity pays a fee to some research houses for rating our funds.

4The Lonsec Rating (assigned September 2023) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Fidelity International product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

5© 2024 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). Rating assigned July 2024.

6The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned February 2024) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines

Fund monthly updates

Receive monthly Fidelity Future Leaders Fund performance and insights.

Subscribe 
marketo form dynamically added