Asia is the world’s fastest-growing economic region and this investment trust looks to capitalise on this by investing not only in the stock markets of the major economies of this region (excluding Japan), China, Hong Kong, and India but also those of the less developed markets such as Malaysia, Thailand, and Indonesia. It favours smaller companies as this allows it to find mispriced businesses, the “winners of tomorrow”, before they become well known. Indeed, with more than 15,000 listed companies in the region, there are a lot of opportunities for a fundamental research driven stock picker.
Nitin Bajaj, the portfolio manager, is a value investor who prefers to invest in small- and medium-sized companies, as they tend to be less well researched and, therefore, more often mispriced. His investment decisions are based on rigorous fundamental analysis, with a bottom-up stock selection approach, making use of Fidelity’s proprietary research resources.
The fundamental analysis evaluates various factors including, but not limited to, stock valuation, financial strength, cash flows, the company's competitive advantage, business prospects and earnings potential.
There are three guiding principles in Nitin's investment process:
Understanding the business
Paying the right price for the business (valuation)
Being aware of existing market expectations
Past performance is not a reliable indicator of future results. Fidelity does not give advice. If you’re unsure of the suitability of an investment for you, you should speak to a financial adviser.
The value of investments can go down as well as up so investors may get back less than they invest. Overseas investments are subject to currency fluctuations. This investment trust can gear through the use of bank loans or overdrafts and this can be achieved through the use of derivatives. Their use may lead to higher volatility in the Net Asset Value and Share Price. This investment trust may invest more heavily than others in smaller companies, which can carry a higher risk because their share prices may be more volatile than those of larger companies. This investment trust is also able to invest some or all of its assets in developing overseas markets which carry a higher risk than investing in larger established markets. Investments in emerging markets are likely to experience greater rises and falls in value and there may be trading difficulties.
Incorporated in England and Wales with company number 3183919.
Registered office: FIL Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
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