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Fidelity China Special Situations PLC

China is now, by some measures, the largest economy in the world and there is a growing recognition that exposure to China should be a core part of a diversified portfolio. Through it’s extensive on the ground presence Fidelity China Special Situations PLC has identified those parts of the Chinese economy that are growing fastest and most consistently and has established a trust with over 100 underlying investments to provide exposure to China.

This award-winning trust is primarily made up of securities issued by companies listed in China and Hong Kong although it may also invest in companies listed elsewhere that generate a significant amount of their revenues in China & Hong Kong.

What’s our approach?

This investment trust is very much built from the bottom up. With a tilt towards small- and mid-cap companies where lower levels of research coverage tends to lead to more opportunities for mispricing, the portfolio also tends to show a growth bias.

Dale Nicholls, the portfolio manager, believes the best equity investments are in:

  • Companies with good long-term prospects
  • Cash generative businesses
  • Companies controlled by strong management teams

Ideally, these factors aren’t well understood by the market, and are therefore not reflected in valuations. So he devotes much of his time to cross-checking with external independent sources what companies are telling him.

In choosing stocks for the portfolio, Dale brings a regional perspective to bear. He compares Chinese companies and China’s economic development to regional peers, ensuring only the strongest ideas find their way into the portfolio.

Board of Directors

Board members

Important information

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.

Registration information

Incorporated in England and Wales with company number 3183919.

Registered office: FIL Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

Fidelity China Special Situations PLC is a member of the Association of Investment Companies.
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Latest research
Money Observer
Money Trust awards 2016
Money Trust awards 2015