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What does the global lockdown mean for dividends?

8 April 2020

Latest articles from Fidelity fund managers – providing insight into the impact of the pandemic in respect of market and investment issues, utilising the breadth of Fidelity’s investment capability around the world.

NEW: What does the global lockdown mean for dividends?

With large swathes of the world’s population on lockdown and economic activity on hold, we assess the likely damage to dividend payments over the coming months. We outline how Fidelity’s equity income portfolios are navigating this environment and why selectively forsaking dividend growth this year could still deliver a superior long-term outcome for investors. Written by investment director Matthew Jennings (pictured)

ACCESS THE ARTICLE HERE.

NEW: Understanding market volatility

Financial history shows that from time to time markets experience bouts of heightened volatility. These setbacks could be the result of any number of factors: economic uncertainty, monetary or fiscal policy changes, financial contagion or geopolitical tension, for example. With this in mind, Fidelity has produced interactive tools to take a look at the past and highlight what lessons we can learn for the future. ACCESS THE ARTICLE HERE.

See more articles, webcasts and recorded calls between its CIOs, on the Fidelity website: ACCESS MORE ARTICLES HERE.

The last recorded call between Fidelity’s CIOs is took place on Tuesday 7 April.

In the calls, Fidelity’s chief investment officers (CIOs) will be hosting the latest of their weekly discussions on the issues for the markets and investment portfolios resulting from the impact of the Coronavirus.

YOU CAN LISTEN TO THE CALLS VIA THE ‘PERSPECTIVES’ PAGE ON THE FIDELITY WEBSITE

PANDEMIC INVESTING

In this article, Global equities manager, Jeremy Podger looks at the three distinct phases of the coronavirus pandemic and discusses how they map onto both equity market returns and economic activity.

READ THE ARTICLE HERE

MANAGING INVESTING IN UNCERTAIN TIMES – 7-page document

Volatility support PDF for clients

Fidelity has produced a 7-page document that covers all things volatility.

Click here to access: managing-investments-in-uncertain-times

The document is designed as a useful tool for advice firms to use with clients. It is chaptered as follows:

• Understanding volatility

• Volatility is normal

• Keep a cool head

• Time in the market

• The value of diversity

• Equities versus cash and bonds

• The benefits of regular investing

• Looking ahead

 

Investors should note that the views expressed may no longer be current and may have already been acted upon. Past performance is not a reliable indicator of future returns. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. The value of investments in overseas markets may be affected by changes in currency exchange rates. Investments in small and emerging markets can be more volatile than other more developed markets. Funds which invest in smaller companies can carry a higher risk because the share prices may be more volatile than those of larger companies. Some funds can use derivatives with the aim of risk or cost reduction or to generate additional capital in line with their risk profile. In such situations performance may rise or fall more than it would have done otherwise, reflecting such additional exposure. Funds with concentrated portfolios may also have the potential of having high volatility. Some equity and fixed income funds take their annual management charge from capital and not from the income generated by the fund. This means any capital growth in the fund will be reduced by the charge. Capital may reduce over time if the fund’s growth does not compensate for it. The price of bonds is influenced by movements in interest rates, changes in the credit rating of bond issuers, and other factors such as inflation and market dynamics. In general, as interest rates rise the price of a bond will fall (and vice versa). Bonds with a longer time to maturity are generally affected to a greater degree. Investments into Fidelity’s funds should be made on the basis of the current prospectus (if available) and the key information document. These documents, together with the current annual and semi-annual reports, are available in the ‘Documents’ section of each Fund’s online factsheet.

The value of investments (and the income from them) can go down as well as up and you may not get back the amount invested. Past performance is not a reliable indicator of future returns. Investments into Fidelity’s funds should be made on the basis of the current prospectus (if available) and the key information document. These documents, together with the current annual and semi-annual reports, are available in the ‘Documents’ section above.

© FIL Limited 2020

 

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