Fidelity China Special Situations

LN: FCSS

£1280.5m market cap

233p last close

Fidelity China Special Situations aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities issued by companies listed in China or Hong Kong and Chinese companies listed elsewhere. It may also invest in listed companies with significant interests in China and Hong Kong.

Investment summary

Fidelity China Special Situations (FCSS) had a challenging year in 2018, heavily influenced by the correction in Chinese equities that was longer and deeper than in other major stock markets. However, the trust’s longer-term returns have been strong, with an impressive 14.0% annualised NAV total return over five years, which is well ahead of its benchmark MSCI China index, as well as the MSCI World and FTSE All-Share indices. The market fall created compelling opportunities for manager Dale Nicholls, who added to holdings in high-quality companies that were trading at historically low valuations. The manager is optimistic about the long-term outlook, but he anticipates that volatility may persist and cut net market gearing from c 23% to c 18% in December 2018, mainly via index hedges.

Share price graph
Price performance
%
1m
3m
12m
Actual 8.9 21.1 (6.2)
Relative* 6.7 11.5 (8.9)
52-week high/low 268.0p/182.4p
*% relative to local index
Key management
Nicholas Bull Chairman
David Causer Chairman of the Audit Committee

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