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Fidelity China Special Situations PLC

Last Deal Price (p)

321.50

Net Change (%) ↑↓

-0.77

Estimated NAV (p)

347.12

Prem/Disc (%)

-7.38

Source: 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.

Celebrating 10 years

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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 to the region 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.

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Opportunities among China’s innovative private companies

Across the world, companies are generally coming to public markets later and China is no exception in this regard. Against this backdrop, Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, discusses how and why he is utilising the trust’s closed-ended structure to invest in China’s vibrant unlisted sector.

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Why China is still the land of opportunity

As Fidelity China Special Situations PLC passes its 10th anniversary, portfolio manager Dale Nicholls reflects on how the Chinese equity market has transformed over the last decade. He discusses the opportunities that have been created by the rise of the domestic consumer and looks ahead to what the coming years could have in store for investors.

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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

Nicholas Bull

Chairman

Elisabeth Scott

Senior Independent Director

Vanessa Donegan

Chairman of the Investment Committee

Mike Balfour

Chairman of the Audit Committee

Linda Yueh

Non-Executive Director

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.

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Company Research - Edison

Domestic growth focus delivers outperformance
Weak sentiment providing opportunities
Domestic opportunities offer exciting prospects

News & Insights - China Special Situations PLC

Opportunities among China’s innovative private companies

Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, ...


China Special Situations

China Special Situations

Investment Trust Range

A contrarian view of Hong Kong

It’s hard to find a market that’s had a tougher run than Hong Kong lately, ...


China Special Situations

China Special Situations

Investment Trust Range

Why China is still the land of opportunity

As Fidelity China Special Situations PLC passes its 10th anniversary, portf...


China Special Situations

China Special Situations

Investment Trust Range

*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.