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Assessing FDIVX’s Year-to-Date Portfolio Changes

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Fidelity Diversified International Fund overview

The Fidelity Diversified International Fund (FDIVX) primarily invests in non-US securities and prefers common stocks for investing in equities. Its assets are spread across multiple regions.

The fund’s management uses a fundamental analysis of factors such as an issuer’s financial condition and industry position, as well as market and economic conditions, before selecting stocks for the portfolio.

FDIVX’s assets were spread across 222 holdings in June 2016, and it was managing assets worth $20.4 billion as of August. In June, its equity holdings included Anheuser-Busch InBev (BUD), Sanofi (SNY), RELX Group (RENX), Check Point Software Technologies (CHKP), and SABMiller (SBMRY).

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Portfolio changes in the Fidelity Diversified International Fund

Financials is FDIVX’s top invested sector. Healthcare and consumer staples follow. These three sectors combined form ~54% of the fund’s portfolio holdings. The consumer discretionary and information technology sectors also help form the core of the fund.

Compared to the MSCI EAFE Index, FDIVX is overweight the healthcare, consumer discretionary, consumer staples, and information technology sectors, while being underweight in all other sectors.

We’ve looked at the quarterly portfolios of the fund for the past three years until June 2016. Its growing affinity toward the consumer staples sector and its falling interest in the consumer discretionary sector is clear. 

The healthcare sector has seen a sharp rise in allocation over 4Q13, and the allocation of information technology stocks has also risen compared to 4Q13. Telecommunications services stocks are currently out of favor. Meanwhile, utilities, which had been completely liquidated after 1Q14, were reintroduced in 2Q16.

How has FDIVX fared in 2016, and why? Let’s explore this in the next article.

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