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Having trouble finding a Global - Equity fund? Fidelity Value Fund (FDVLX) is a potential starting point. FDVLX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that FDVLX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FDVLX. Fidelity Value Fund made its debut in December of 1978, and since then, FDVLX has accumulated about $7.06 billion in assets, per the most up-to-date date available. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund has delivered a 5-year annualized total return of 10.55%, and it sits in the middle third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.01%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FDVLX over the past three years is 10.69% compared to the category average of 9.91%. The standard deviation of the fund over the past 5 years is 10.58% compared to the category average of 9.63%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In FDVLX's case, the fund lost 61.55% in the most recent bear market and outperformed its peer group by 9.11%. This makes the fund a possibly better choice than its peers during a sliding market environment.
Nevertheless, investors should also note that the fund has a 5-year beta of 0.99, which means it is hypothetically as volatile as the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FDVLX's 5-year performance has produced a negative alpha of -3.32, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.