Last checked at 11 Nov 2019 10:34
London, UK, 11 November 2019
Edison reviews Fidelity China Special Situations (FCSS)
Fidelity China Special Situations (FCSS) offers investors direct exposure to China for a portion of their portfolio, aiming to deliver long-term capital growth from investing in companies listed in China, and Chinese companies listed elsewhere. Since the trust's inception in April 2010, FCSS's NAV total return has increased by nearly 11% pa. The portfolio has a bias towards mid- and small-cap companies, which tend to be less well researched and potentially mispriced. The manager, Dale Nicholls, is focused on opportunities related to rising domestic consumption, which in his view is unlikely to be disrupted by the ongoing US-China trade dispute.
FCSS currently trades at an 9.1% discount to its cum-income NAV. This is towards the higher end of the trust's most recent range of 6-10% since February 2019, which may reflect the current subdued sentiment towards Chinese equities. The board introduced a single-digit discount policy in June 2019 and actively promotes the trust. There is scope for a narrower discount should investor appetite improve.
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