Last checked at 3 Jul 2019 17:08
London, UK, 3 July 2019
Edison reviews Fidelity China Special Situations (FCSS)
Fidelity China Special Situations (FCSS) has had a challenging period over the last 12 months, with its performance affected by a significant sell-off in Chinese equities. However, the longer-term performance remains strong in absolute and relative terms, with a 16.9% pa NAV total return over five years clearly ahead of the 14.1% pa return of the MSCI China index. The manager continues to find attractive new investment ideas, such as recent portfolio addition, luxury e-commerce platform Secoo Holding, and points to the opportunities for long-term focused stock pickers that can be created by market volatility. FCSS's discount has recently narrowed below 10% and the board has introduced a formal single-digit discount control policy, which should help reduce future discount volatility.
FCSS's share price discount to NAV has historically been strongly influenced by Chinese equity market sentiment and the discount has ranged from 5.0% to 23.4% over the last five years. However, the discount has narrowed below 10% this year, and in June 2019, the board adopted a formal single-digit discount control policy.
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