Fidelity China Special Situations PLC

CHINA is forecast to become the world’s largest economy within the next decade, with the growth being driven by an expanding middle class, rising incomes and technological innovation. This powerful combination should create a strong backdrop for funds investing in the country with one potential beneficiary being Fidelity China Special Situations PLC.

Manager Dale Nicholls has a disciplined, bottom-up stock selection approach, which favours cash generative companies with good long-term prospects that are controlled by strong management teams. Being structured as an investment trust enables him to take advantage of gearing (borrowing to invest) when appropriate and to make illiquid unlisted investments without the risk of becoming a forced seller.

One area that he has always been focused on is the rise of the Chinese consumer and the natural development of the middle class, with consumer discretionary being a key overweight relative to the benchmark. The same is true of industrials, a sector which is benefitting from innovation and consolidation.

Fidelity China Special Situations PLC 5-year share price performance

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. The shares in the Fidelity China Special Situations investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.