Overview
Fidelity China Special Situations PLC
Last Deal Price (p)
411.95Net Change (%) ↑↓
+1.97Estimated NAV (p)
418.61Prem/Disc (%)
-3.49Source: Morningstar PLC. Share price is delayed by 15 minutes. Net Asset Value (NAV) and discount/premium are estimated.*
Important information: please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a reliable indicator of future results. 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 an authorised financial adviser.
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's sheer economic size and year-on-year growth means that investors should consider an exposure specifically 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.
China’s structural shifts gather speed
China’s swift return to “normality” should mean lower risks compared to many developed countries still struggling with the impact of the virus. Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, examines the investment opportunities ahead as selected areas continue to reap benefits from the structural trends accelerated by Covid-19.
Find out moreChina resurgence leads the way
In this interview with Citywire, Hong Kong-based Catherine Yeung, Investment Director, Fidelity China Special Situations PLC, gives a snapshot of a recovering China and what the latest earnings season tells us about businesses moving forward.
Read more
What’s our approach?
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 in China and Chinese companies listed elsewhere. He may also invest in companies with significant interests in 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 with some of the broadest access to investment opportunities in China.
Dale Nicholls, Portfolio Manager
Dale Nicholls joined Fidelity in 1996 as a Research Associate in our Tokyo office. It was during his tenure as an analyst that Dale first began to take an interest in the dynamics of the Chinese market. He regularly visited Chinese companies to get a clear view of the key supply and demand chains of the industries he covered. In 2003, he was promoted to portfolio manager of the Fidelity Pacific Fund and retains management of that portfolio today. In his current role, Dale spends much of his time traveling within China to meet with the management teams and competitors of companies in which he may, or already does, invest, visiting well over 100 companies a year.
Prior to joining Fidelity, Dale worked at Bankers Trust Asia Securities in Tokyo and as a Market/Business Analyst at Sony Corporation, also in Tokyo. He graduated from the Queensland University of Technology in Australia.
Investment objective
The investment objective of the Company is to achieve long-term capital growth from an actively managed portfolio made up primarily of securities issued by companies listed in China and Chinese companies listed elsewhere. The Company may also invest in listed companies with significant interests in China.
Summary of the key aspects of the Investment policy
The Portfolio Manager will focus on identifying companies which are most likely to benefit from China’s growth and changing economy.
The Company is not restricted in terms of size or industry of companies included in the portfolio and may invest in unlisted securities.
The Company may also invest into other transferable securities, collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for gearing purposes and efficient portfolio management.
The Company has adopted a variable management fee which is calculated by referencing performance relative to the MSCI China (N) Index.
Your Board of Directors
Reports & Literature
Latest monthly factsheet
Contains the latest portfolio manager commentary, performance data and breakdown of the trust’s holdings.
Annual report
The latest annual report includes an update on the trust’s strategy, governance and financial performance.
Half-yearly report
The half-yearly report includes the Portfolio Manager’s review, financial highlights and latest portfolio holdings.
Key Information Document
This document provides you with key information about this investment product. It is not marketing material.
Investors should be aware that the content of the Key Information Document (KID), including methodologies for the calculation and presentation of risks, performance scenarios and costs are defined by technical standards under the EU’s PRIIPs Regulation. The forward-looking Performance Scenarios are based on degrees of variation from historic performance, and cannot be guaranteed. The figures in the KID may not reflect the expected returns for the Company and will be higher following periods of strong returns and lower following market falls. Please remember that past performance is not a guide to future performance.
Additional Information
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News & Insights - China Special Situations PLC
China’s structural shifts gather speed
China’s swift return to “normality” should mean lower risks compared to man...
China resurgence leads the way
Hong Kong-based Catherine Yeung, Investment Director, Fidelity China Specia...
MoneyWeek talks to Dale Nicholls about investing in Chinese compa...
In this MoneyWeek podcast hear about the sectors he likes, the themes he's ...
*The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Important information
Overseas investments are subject to currency fluctuations. This Investment Trust invests in emerging markets which can be more volatile than other more developed markets. This trust invests 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 and the securities are often less liquid. This trust uses financial derivative instruments for investment purposes, which may expose it to a higher degree of risk and can cause investments to experience larger than average price fluctuations. The shares in the 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.
Nicholas Bull FCA 1, 2
Mr Bull is the Senior Independent Director of Coats Group plc. He is a trustee of the Design Museum, the Conran Foundation, the Camborne School of Mines Trust and the Creative Education Trust, a multi academy trust.
He was a Director, then Chairman, of hotels group De Vere from 2010 until the completion of its asset disposal programme in 2015. He was also Chairman of the Advisory Board of City stockbroker, Westhouse Securities and was a member of Council of the University of Exeter from 2009-2018.
Previously Mr Bull worked for 30 years as a corporate finance practitioner with Morgan Grenfell (subsequently Deutsche Bank), Société Générale and ABN AMRO in London, Sydney, Singapore and Hong Kong.
He is a qualified Chartered Accountant.
Appointed 4 February 2010
Appointed as Chairman 22 July 2016
All the Directors are non-executive directors and all are independent.
1 Member of the Nomination and Remuneration Committee
2 Member of the Unlisted Investment Committee
Elisabeth Scott 1, 2, 3 is a non-executive Director of Pacific Horizon Investment Trust PLC, Dunedin Income Growth Investment Trust PLC and Allianz Technology Trust PLC. Ms Scott worked in the asset management industry in Hong Kong from 1992 to 2008, where she was Managing Director and country Head of Schroder Investment Management (Hong Kong) Limited and Chairman of the Hong Kong Investment Funds Association.
Appointed as Senior Independent Director on 22 July 2016 and Chair of the Nomination and Remuneration Committee
Appointed 1 November 2011
All the Directors are non-executive directors and all are independent.
1 Member of the Audit & Risk Committee
2 Member of the Nomination and Remuneration Committee
3 Member of the Unlisted Investment Committee
Mike Balfour 1, 2, 3 has over 30 years’ experience in financial services. He was chief executive of Thomas Miller Investment Ltd until 2016 and was previously chief executive at Glasgow Investment Managers and chief investment officer at Edinburgh Fund Managers Limited. Mike’s early investment management career was focused on the nascent equity markets of Asia. He is a non-executive director of Standard Life Investment Property Income Trust plc, Martin Currie Global Portfolio Trust plc and Perpetual Income and Growth Investment Trust plc. He also chairs the investment committee of TPT Retirement Solutions (previously The Pensions Trust). He is a member of the Institute of Chartered Accountants of Scotland.
Appointed on 1 October 2018
Appointed as Chairman of the Audit Committee on 24 July 2019
All the Directors are non-executive directors and all are independent.
1 Member of the Audit & Risk Committee
2 Member of the Nomination and Remuneration Committee
3 Member of the Unlisted Investment Committee
Dr Linda Yueh 1,2 is a Fellow in Economics at St Edmund Hall, Oxford University and Adjunct Professor of Economics at London Business School. She is also Visiting Professor at LSE IDEAS, the International Affairs, Diplomacy & Strategy centre at the London School of Economics. She has written numerous books and served as editor for several series of books. She is a Non-Executive Director of Rentokil Initial plc and Chair of Baillie Gifford’s The Schiehallion Fund. She is a past Non-Executive Director of JPMorgan Asian Investment Trust plc and Baillie Gifford’s Scottish Mortgage Investment Trust plc.
Appointed on 1 June 2019
All the Directors are non-executive directors and all are independent.
1 Member of the Audit & Risk Committee
2 Member of the Nomination and Remuneration Committee
Vanessa Donegan 1,2,3 has 37 years of Asian fund management experience, including managing dedicated China portfolios. She was Head of the Asia Pacific desk at Columbia Threadneedle Investments Ltd. (formerly Threadneedle Investments Ltd.) for twenty-one years and has extensive experience of marketing to retail and institutional clients across the globe.
She is an independent non-executive director of Herald Investment Management Ltd., the JP Morgan Indian Investment Trust plc, the Invesco Asia Trust plc and the SSGA Luxembourg SICAV.
Appointed as a Director on 1 September 2020
Appointed as Chairman of the Investment Committee on 1 September 2020
All the Directors are non-executive directors and all are independent.
1 Member of the Audit and Risk Committee
2 Member of the Nomination and Remuneration Committee
3 Member of the Unlisted Investment Committee