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Fidelity China Special Situations PLC

Last Deal Price (p)

211.50

Net Change (%) ↑↓

-0.24

Estimated NAV (p)

233.24

Prem/Disc (%)

-9.32

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.

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ANNUAL GENERAL MEETING

The AGM of the Company will be held at 11.00 am on Tuesday, 23 July 2024 at 4 Cannon Street, London EC4M 5AB (nearest tube stations are St Paul’s or Mansion House) and virtually via the online Lumi AGM meeting platform.

Dale Nicholls, the Portfolio Manager, will be making a presentation to shareholders highlighting the achievements and challenges of the year past and the prospects for the year to come. He and the Board will be very happy to answer any questions that shareholders may have.

For those shareholders who are unable to attend in person, we will live-stream the formal business and presentations of the meeting online. Further information and joining instructions are provided in the link below.

More Details

Combination with abrdn China Investment Company Limited

On 13th March 2024 Fidelity China Special Situations PLC (FCSS) announced the combination of assets with abrdn China Investment Company Ltd (ACIC). FCSS acquired approximately £126.6 million of net assets from ACIC in consideration for the issuance of 59,005,997 New Shares to ACIC Shareholders in accordance with the Scheme. The New Shares were admitted to trading on the main market of the London Stock Exchange at 8am on 14th March.

See here for further details

Read the prospectus and related documents
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A market too big to ignore

As the world’s second-largest economy, China is shifting from export-led growth towards an economy driven by domestic consumption. With expanding middle classes, rising incomes and technological innovations driving this change and creating a solid backdrop for companies to thrive, investors seeking an effective globally diversified portfolio may want to consider allocating some of their portfolio to China.

Fidelity China Special Situations PLC provides focused exposure to companies benefiting from this growth opportunity. New consumer spending power and increasing aspirations underpin many of the portfolio’s investments alongside burgeoning industries such as e-commerce and healthcare.

What sets us apart

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One stop shop

If you’re looking for broad exposure to the long-term potential of Chinese equities, we believe the trust offers the 'one stop shop' many investors might be looking for.

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Feet on the ground

We have deep research capabilities and locally based experts; to truly 'get under the bonnet' of the stocks we invest in.

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Unlisted expertise

We tirelessly look to identify and invest in companies that are best placed to capitalise on China’s incredible transformation, ahead of any potential public listing.

  • ‘One stop shop’ - gain broad exposure to the opportunity China offers through this one portfolio

The sheer size of China’s economy and its growing importance on the world stage make it a market that’s difficult to ignore. Since its launch in 2010, Fidelity China Special Situations PLC has offered direct exposure to China’s growth story; from tech giants through to entrepreneurial small and medium-sized companies, and even new businesses yet to launch on the stock market. Portfolio manager, Dale Nicholls, finds more opportunities among small and medium-sized companies, where fewer investors leave greater scope for mispricing. However, the Trust has a flexible approach and may invest in larger companies if they fit his criteria.

What’s more, the liquidity offered by the investment trust structure makes it well-suited to holding both listed and unlisted companies. So, if you’re looking for broad exposure to the long-term potential of Chinese equities, Fidelity China Special Situations PLC might be the ‘one stop shop’ investment for your portfolio.

  • ‘Feet on the ground’ - a locally based research team offering deep research capabilities

To find these exciting businesses, Fidelity has deep research capabilities and locally based experts - focusing on those companies with good long-term growth prospects, whose strength has been underestimated by the wider market.

Fidelity’s analysts are Chinese speaking and able to meet with companies in person to truly “get under the bonnet” of the stocks they invest in and provide unparalleled insight into a complex country, rich with opportunity. The portfolio comprises around 100 hand-picked growth stories that best harness the country’s long-term potential.

  • Unlisted expertise - investing in tomorrow’s potential winners

Making use of the closed ended nature of an investment trust, the trust can also invest up to 15% of the portfolio in unlisted companies.

The portfolio manager looks to identify and invest in companies that are best placed to capitalise on China’s incredible transformation, taking advantage of their early-stage growth before they become listed on public markets. These are often beneficiaries of growing domestic consumption and the rising middle class, but also technological innovation, healthcare or the green economy.

News & Insights - China Special Situations PLC

The case for investing in China

Kepler Trust Intelligence - latest research note on the Company

Fidelity China Special Situations offers investors direct exposure to the Chinese growth story from a diverse range of sources. Manager Dale Nicholls has a bias to small- and mid-cap companies as he views them as the best way to capture the growth opportunities from the increasing wealth of the Chinese consumer and to generate excess returns.

Read more
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Taking stock of China’s evolving investment landscape

Chinese equities have recently been marked by elevated volatility, but there are signs of economic stabilisation and green shoots of improving investor sentiment. Having recently celebrated 10 years at the helm of Fidelity China Special Situations PLC, Dale Nicholls reflects on the key changes he’s seen on the ground through a tumultuous period and outlines why now could be an opportune time to revisit the case for Asia’s largest economy and stock market.

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Will the year of the Dragon fire up Chinese equities?

As investors across the region ushered in the Year of the Dragon last month, hoping for a better year for China’s markets, Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, outlines why despite the volatility, the overall trend still points to a recovery in growth and highlights the key areas of opportunity still to be found in the world’s second largest economy.

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Will the year of the Dragon fire up Chinese equities?
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Fidelity China Special Situations maintains its place on AJ Bell Select List for 2024

Fidelity China Special Situations PLC retains its place as one of just 18 investment trusts on AJ Bell’s Select List. The investment specialists at what is one of the UK’s leading investment platforms analyse the investment trust market, looking at factors including price, performance and size to create their list of preferred investment trusts. Fidelity European Trust PLC and Fidelity Special Values PLC also feature in the shortlist.

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Kepler Trust Intelligence: Fidelity China Special Situations Event

Dale Nicholls portfolio manager of Fidelity China Special Situations PLC had the opportunity to make the case for investing in China during this event hosted by Kepler Partners. Hear about the opportunities Dale sees for the strategy, the current positioning of the portfolio, plus a view from the Chairman of the trust, Mike Balfour, on the recent announcement of the proposed merger with Abdrn China Investment Company.

Watch now
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Measuring China’s recovery

Sentiment towards China remains weak, but the fundamental backdrop is improving and could represent an opportunity as we go through the year ahead given low valuations. Fidelity China Special Situations PLC’s Dale Nicholls looks past the macro headlines and analyses the key risks and opportunities facing investors in China in the year ahead.

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China: Opportunities in a re-opening economy

On his recent visit to the UK from China, Dale Nicholls, portfolio manager of Fidelity Special Situations, explains to Citywire’s Gavin Lumsden where he is currently finding exciting opportunities at a time when China is cheap against both its own history and compared with other markets.

Watch now
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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.

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Past Performance (%)

Oct 2018 -
Oct 2019

Oct 2019 -
Oct 2020

Oct 2020 -
Oct 2021

Oct 2021 -
Oct 2022

Oct 2022 -
Oct 2023

Net Asset Value

10.9

61.3

-5.2

-39.1

14.3

Share Price

12.0

80.1

-11.7

-43.2

16.4

MSCI China Index (Net)

11.5

35.3

-14.4

-38.0

14.9

Past performance is not a reliable indicator of future returns.
Source: Morningstar as at 31.10.2023, bid-bid, net income reinvested. ©2023 Morningstar Inc. All rights reserved. The MSCI China Index (Net) is a comparative index of the investment trust.

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 in China, both listed and unlisted, as well as Chinese companies listed elsewhere. The Company may also invest in 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.

AGM 2023 - Portfolio Manager Review

Your Board of Directors

Mike Balfour

Chairman

Vanessa Donegan

Senior Independent Director

Alastair Bruce

Chairman of the Audit Committee

Georgina Field

Non-Executive Director

Dr Edward Tse

Non-Executive Director

Gordon Orr

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.

Additional Information

Historical reports and announcements

Ready to invest?

Tell us whether you are a personal investor or an investment professional, and we will show you the different ways you can invest in our trusts.

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News & Insights - China Special Situations PLC

ANNUAL GENERAL MEETING

The AGM of the Company will be held at 11.00 am on Tuesday, 23 July 2024 at 4…


Dale Nicholls

Dale Nicholls

Portfolio Manager

Final Results Announced 2024

The Company has announced Final Results for the year ended 31 March 2024.


Fidelity

Fidelity

Research team

Taking stock of China’s evolving investment landscape

Chinese equities have recently been marked by elevated volatility, but there …


Dale Nicholls

Dale Nicholls

Portfolio Manager

*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.