Fidelity Overseas Fund Q1 2025 Review

2025-05-06 23:50:00 ET

Summary

• For the first quarter of 2025, Fidelity Overseas Fund's Retail Class shares gained 6.49%, trailing the 6.94% advance of the benchmark MSCI EAFE Index (Net MA).
• Security selection in the Netherlands and U.K., along with positioning in Switzerland and Denmark, detracted from performance versus the benchmark.
• Although international developed-markets did a lot better than most U.S. equity benchmarks in Q1, it was nevertheless a challenging quarter for the fund, as value strongly outperformed growth.

Investment Approach

• Fidelity® Overseas Fund is a diversified international equity strategy that seeks long-term capital growth.
• The fund's philosophy centers around owning high-quality companies purchased at attractive prices that can outperform the market over the long term, given their ability to compound value through the re-investment of earnings back into the business at attractive returns. By focusing on buying these companies at inexpensive valuations, we attempt to build in an inherent margin of safety in the investment.
• We particularly favor firms with unique business models that are able to generate sustainably high returns on capital through a full business cycle and are trading at a discount to their intrinsic (fair) value based on several conservative valuation frameworks.
• We strive to uncover these companies through in-depth fundamental analysis, working in concert with Fidelity's global research team, as well as by leveraging the fund manager's own independent analysis.

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