Bloomberg News

Fidelity Investments Adds Two Global Equity-Income Funds

May 10, 2012

Fidelity Investments, the second- largest mutual fund company, introduced two versions of a global-equity fund designed to appeal to investors seeking dividend income.

The Fidelity Global Equity Income Fund and the Fidelity Advisor Global Equity Income Fund will buy dividend-paying stocks around the world in an effort to generate income amid a volatile stock market and low bond yields, Boston-based Fidelity said today in a statement.

“This fund should be able to generate good risk-adjusted returns while delivering good dividend yields,” Ramona Persaud, the fund’s manager, said in a telephone interview.

Persaud, who has been with Fidelity since 2003, buys a similar group of stocks for the $8.8 billion Fidelity Equity- Income Fund (FEQIX:US), which she helps manage. That U.S.-oriented fund beat 77 percent of rivals this year while trailing 96 percent over five years, according to data compiled by Bloomberg.

Companies around the world have consistently paid higher dividends than their counterparts in the U.S., Fidelity said. Because markets outside the U.S. are less efficient, they can “create significant investment opportunities,” the firm wrote.

The 10-year U.S. Treasury note yields about 1.83 percent. The dividend yield on the Standard & Poor’s 500 Index, a benchmark for large U.S. stocks, is 2.1 percent.

To contact the reporter on this story: Charles Stein in Boston at cstein4@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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Companies Mentioned

  • FEQIX
    (Fidelity Equity-Income Fund Inc)
    • $61.05 USD
    • -0.72
    • -1.18%
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