When, or if, the global economy starts to recover, the industrial sector is one that is expected to react well, and the Fidelity Global Industrials fund is positioned to take full advantage if this happens.

Data from FE Analytics shows that the MSCI Energy and MSCI Materials indices have beaten the MSCI AC World index over the past decade, substantially outperforming in rising markets but underperforming in falling ones.

Fidelity Global Industrials has large holdings in the energy sector and 57 per cent in basic materials, meaning its track record follows those two indices closely.

Ben Willis, head of research at Whitechurch Securities, said: "It’s very much a play on a pick-up in global growth with a traditional energy focus in there."

"When things do start to recover these are good areas to look at."

"However, most people will be thinking about what will happen if China has a hard landing, which more and more people are saying they think will happen."

"If you do want to get into these sectors the question is timing."

Although investors at the time of the portfolio’s launch in 2000 would have seen their holdings lose 26 per cent of their value in the next two years, over the 12-year lifetime of the fund it has gained 127.57 per cent.

This is despite the serious sell-offs in 2008, where the fund lost substantially more than the IMA Global sector average, and 2010, where the fund again underperformed.

Performance of fund vs sector since launch



Source: FE Analytics

Fidelity Global Industrials was run until January this year by FE Alpha Manager Amit Lodha, who now controls Fidelity Global Focus and Fidelity Global Real Asset Securities. Christopher Moore has taken his place.

FE Trustnet recently reported that Lodha was bullish about the US recovery. The Fidelity Global Industrials fund has 44.6 per cent in North America, boosted by large holdings in General Electric and United Technologies, the latter a manufacturer of aerospace parts and building systems.

US energy companies Exxon Mobil and Chevron are also top-10 holdings, and both utilise the new fracking techniques that have been credited with bringing down energy costs in the world’s largest economy.

Willis says fracking – the extraction of natural gas from previously inaccessible areas – could potentially boost the American economy in the coming years by bringing down manufacturing costs.

However, he said that Whitechurch is more cautious about the investment horizon at the current time.

"At the moment we are in ‘wait and see’ mode," he explained.

"We actually do like Europe. It’s so cheap right now. But the question is if we want to invest before the summer when business slows down."

"We have some solid cash positions. We think there might be further market falls and if they do happen we would be looking to get into equities."

Fidelity Global Industrials is one of the most expensive in the sector, with a minimum investment of £2,500 and a TER of 1.94 per cent.