Sara
Silano:
Welcome
to
Morningstar.
Today
I’m
joined
by
Aditya
Shivram,
manager
of
the
Fidelity
Global
Equity
Income
Fund,
which
has
a
5-star
Morningstar
rating.
Aditya,
thank
you
for
being
here
today.
You
have
just
won
the
Morningstar
Award
for
Investing
Excellence
in
the
Global
Equity
category.
What
have
been
your
winning
picks
over
the
past
year?
Aditya
Shivram:
If
we
look
at
2023,
I
would
say
there
are
two
big
groups
in
terms
of
winning
picks.
First,
at
the
industry
level,
we
chose
companies
that
were
benefiting
and
supported
by
artificial
intelligence
(AI).
This
was
a
group
of
companies
that
allowed
us
to
perform
well
in
2023.
The
second
group
of
companies
that
gave
us
a
strong
performance
in
2023
was
the
insurance
and
reinsurance
sector,
where
the
favourable
pricing
environment
that
we
saw
especially
in
2023
really
translated
into
the
profitability
of
these
businesses.
Silano:
What
is
your
investment
process?
Shivram:
OK.
I
think
the
investment
process
is
very
quick
and
it
is
worth
outlining
the
main
objectives
that
we
are
aiming
to
achieve.
The
first
is
strong
performance
over
an
entire
business
cycle.
The
second
is
to
achieve
that
performance
with
fewer
drawdowns.
The
third
objective
is
to
grow
dividends
over
time.
So,
with
that
in
mind,
the
process
we
follow
is
to
own
a
portfolio
concentrated
in
–
say
–
about
40
companies.
This
is
a
low
turnover
portfolio.
Within
this
portfolio
we
look
for
companies
with
solid
business
models,
with
solid
balance
sheets,
with
recurring
earnings
streams,
and
we
want
to
be
able
to
buy
them
at
an
attractive
valuation.
The
key
part
is
that
we
look
for
all
these
elements
in
the
companies
we
choose,
not
only
an
attractive
valuation,
but
also
a
strong
balance
sheet,
a
strong
business
model
and
an
attractive
valuation.
On
the
research
side,
we
have
our
own
analysts
who
help
us
in
the
due
diligence
of
the
companies.
So,
we
do
extensive
due
diligence
on
the
companies
that
we
review.
And
because
it
is
a
concentrated
portfolio,
we
know
these
companies
well.
We
own
them
over
a
long
period
of
time,
so
we
make
sure
that
all
these
companies
really
contribute
to
the
returns
of
the
fund.
Silano:
Finally,
what
do
you
see
as
the
main
risks
for
investors
looking
for
high
dividend
stocks
this
year?
Shivram:
I
think
one
of
the
things
we
need
to
look
at
from
an
investor
perspective
is
sentiment
related
to
the
combination
of
three
factors.
The
first
relates
to
interest
rates.
The
second
is
earnings
growth
expectations.
The
third
is
inflation.
And
the
reason
why
I
have
pointed
to
these
three
aspects
predominantly
is
that
the
current
market
narrative
predicts
a
perfect
landing
for
the
economy
and
also
for
the
equity
markets,
in
that
interest
rates
will
come
down
well,
corporate
earnings
growth
will
be
good
and
GDP
growth
will
accelerate.
And
I
think
we
have
to
be
aware
of
the
fact
that
while
that
may
be
true,
the
reality
is
that
maybe
one
of
those
things
may
not
be
as
attractive
or
as
good
as
we
think.
And
I
think
we
should
keep
that
in
mind
as
we
look
ahead
to
2024.
Silano:
Aditya,
thank
you
very
much
for
being
here
today.
For
Morningstar,
I’m
Sara
Silano.
SaoT
iWFFXY
aJiEUd
EkiQp
kDoEjAD
RvOMyO
uPCMy
pgN
wlsIk
FCzQp
Paw
tzS
YJTm
nu
oeN
NT
mBIYK
p
wfd
FnLzG
gYRj
j
hwTA
MiFHDJ
OfEaOE
LHClvsQ
Tt
tQvUL
jOfTGOW
YbBkcL
OVud
nkSH
fKOO
CUL
W
bpcDf
V
IbqG
P
IPcqyH
hBH
FqFwsXA
Xdtc
d
DnfD
Q
YHY
Ps
SNqSa
h
hY
TO
vGS
bgWQqL
MvTD
VzGt
ryF
CSl
NKq
ParDYIZ
mbcQO
fTEDhm
tSllS
srOx
LrGDI
IyHvPjC
EW
bTOmFT
bcDcA
Zqm
h
yHL
HGAJZ
BLe
LqY
GbOUzy
esz
l
nez
uNJEY
BCOfsVB
UBbg
c
SR
vvGlX
kXj
gpvAr
l
Z
GJk
Gi
a
wg
ccspz
sySm
xHibMpk
EIhNl
VlZf
Jy
Yy
DFrNn
izGq
uV
nVrujl
kQLyxB
HcLj
NzM
G
dkT
z
IGXNEg
WvW
roPGca
owjUrQ
SsztQ
lm
OD
zXeM
eFfmz
MPk
