FIDELITY CHINA SPECIAL SITUATIONS: London-listed trust seeks out firms likely to benefit from China’s changing economy
What is it?
The London-listed trust is focused in China, and aims to identify companies most likely to benefit from the country’s growth and changing economy.
China’s presence in the investment market is growing, as index provider MSCI has increased the number of China-listed shares.
What does the manager invest in?
Some of the largest holdings include Tencent, the Chinese internet giant, and Alibaba, the online shopping titan.
London-listed drug maker Hutchison China Meditech is in the top ten.
What do the experts like?
Fund manager Dale Nicholls has extensive experience in the Far East.
Chris Salih, an analyst at Fundcalibre, says: ‘This, coupled with the breadth and depth of Fidelity’s resources in this region at his disposal, makes the trust an attractive proposition.’
Salih notes that the fund has taken on 25 per cent of its value in debt.
Although this can boost returns when the going is good, it can worsen any poor performance so puts the fund at the higher end of the risk spectrum.