The top five holdings of this fund are: Mastercard Inc A (MA, 3.64%); Microsoft Corp (MSFT, 3.43%); PayPal Holdings Inc (PYPL, 3.36%); Visa Inc Class A (V, 3.11%); and Bank of America Corporation (BAC, 2.70%).
Fidelity Worldwide Fund (FWWFX)
From Fidelity Monitor & Insight
Even as the U.S. and China may be standing on the precipice of an all-out trade war, their economic ties may yet strengthen owing to a recent development: emerging market benchmarks have begun a series of adjustments that have already significantly increased their China exposures. As such, billions of investment dollars (some of it from passive and actively managed funds) will be redirected to China. The changes are intended to reflect China’s growing economic prominence.
But even as more capital comes to chase A shares, during the first two volatile weeks of May (the most current data available), investors pulled more than $5 billion out of Chinese stocks.
Index providers MSCI and FTSE Russell are also altering their benchmarks because China has decided to make far more of its “domestic” A shares available to foreign investors.
A review of how we rate Fidelity’s 31 international funds quickly reveals that we’re not overly enthusiastic—at least not relative to U.S. stock funds. Fidelity Worldwide Fund (FWWFX) is our only Buy-rated foreign fund, though the majority of its assets are American!
Worldwide provides mostly (61%) large-cap U.S. exposure. As for the remainder, 37% is foreign equities with most of that in European stocks (23%) plus a sprinkling in the emerging markets (5%).
Jack Bowers, John M. Boyd and John Bonnanzio, Fidelity Monitor & Insight, www.fidelitymonitor.com, 800-397-3094, June 2019