The UK’s largest China investment trust, Fidelity China Special Situations PLC capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.
China is increasingly recognised as being a major driver of growth and investment performance, not just in Asia, but the wider world. Its sheer economic size and year-on-year growth means that investors should consider an exposure to China when building a balanced portfolio.
Fidelity International is able to use its large Asia-based investment team to identify companies which are most likely to benefit from China's growth and changing economy. In this way, a portfolio of over 100 underlying investments has been built for Fidelity China Special Situations PLC which provides focused exposure to China's true potential.
Dale Nicholls, the Portfolio Manager, makes full use of Fidelity's extensive investment research presence and investment licenses in China - which are among the largest of any international investors'.
Dale focuses on undervalued companies which have good long-term growth prospects which have been underestimated by the wider market.
He has a bias to small and medium-sized companies, where lower levels of research by competitors leads to greater opportunities for mispricing - but he is not constrained and may invest in large or mega-cap companies such as state-owned-enterprises where mispricing appears.
Dale has identified the growth of the middle class and a refocusing on China's economy towards domestic consumption as key drivers of its economy and stock market in the coming years; he therefore focuses on those products and services that cater for this growth within China.
Dale may invest in companies listed domestically in China or Hong Kong or elsewhere (such as the United States) where those companies' primary revenue exposures are within China.
Dale is also free to invest up to 10% of the portfolio in unlisted companies with a view to their Initial Public Offering - providing investors in Fidelity China Special Situations PLC some of the broadest access to investment opportunities in China.
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 an authorised 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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