A concentrated portfolio of typically 20-30 stocks across Asia.
Uses a bottom-up stock selection process that favours companies with a compelling business model, above-average earnings rate, increasing returns on equity over time and attractive valuations.
A disciplined portfolio construction process with a focus on diversification and risk management.
A concentrated approach, so that you can access our best ideas in Asia
Informed by 50+ years' experience investing in the region
Access to 60+ on-the-ground research professionals in Asia
Anthony Srom, Portfolio Manager of the Fidelity Asia Fund describes the most important factors of his investment process, how he finds his best ideas from around Asia and the importance of managing risk.
Portfolio Manager, Anthony Srom for the Fidelity Asia Fund explains the key tenants of the Fund's outperformance and why he thinks this makes it a good choice for those wanting exposure to Asia.
The market in Asia ex-Japan was up a few percentage points. But within that I think we saw a huge amount of dispersion. So, Taiwan obviously being a big player on the AI thematic. India as well, just chugging along as it has been for the last 12 to 18 months.
And on the flip side of that, I think China's been a lot more challenged. So, it has been a market that I’d characterise by a certain level of extremes.
Unfortunately, the Fund did not perform in line with the market over the quarter.
What we saw was a number of detractors in China dragging performance. They were from a mix of sectors. So Focus Media, which is in advertising. So for example, Yum China which would be consumer staples. And what I'm seeing in that particular market
is surprisingly a fair few stocks punching below first quarter 2020 valuation levels despite fundamentals hanging up.
So, the way I’d characterise that is pretty extreme negative sentiment, which unfortunately hit some of the positions in the portfolio there. They’re still owned going forward. Thesis remains intact.
On the more positive side of the ledger, we saw gains in HDFC Bank and TSMC, so Taiwan Semiconductor. Both of those being the two largest positions in the Fund. So private sector banks in India catching a bid, fundamentals coming through. We saw a steep re-rating towards the back end of second quarter. TSMC obviously benefiting from what's happening with AI. It's literally a monopoly provider at the leading node which is what everything is going into the Nvidia chips that you're hearing about etc., and the stock has performed exceptionally well.
Next quarter is actually a short time frame but we've seen the market rally a lot year to date. In some respects I think certain markets the rate of appreciation you’ve seen, you'd question the sustainability around that. So, the point I'm trying to make is, expect many more challenging market conditions going forward.
Specifically, what I reference is the artificial intelligence thematic. We're about 18 months into it now. So, I think as companies clock through quarterly earnings, which will come up, it'll be interesting to see how the rate of growth is progressing.
I think from here on in, it's going to be challenging to show accelerating growth at the revenue and earnings line and I think if that slows somewhat, share prices could find it a bit more challenging.
Want to stay up to date with the latest from the Fidelity Asia Fund? Join Portfolio Manager Anthony Srom as he provides a short quarterly update covering:
You can get more information about the Fund's top holdings here.
See for yourself how the fund has performed since inception. The chart below represents the value now of $10,000 invested in the Fidelity Asia Fund in September 2005 compared with $10,000 invested in the MSCI All Country Asia ex-Japan Index NR.
Chart as at: 31 August 2024
Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: MSCI AC Asia ex-Japan Index NR, effective 1 January 2010. Benchmark data prior to 1 January 2010 is a blend of the MSCI Asia ex-Japan index and the MSCI All Country Asia ex-Japan Index NR: NR at the end of the benchmark name indicates the return is calculated including reinvesting net dividends. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties.
Net returns as at 31 August 2024
| Timeframe | 1 yr % |
3 yr % pa |
5 yr % pa |
7 yr % pa |
10 yr % pa |
15 yr % pa |
Since inception (29/09/05) % pa |
|---|---|---|---|---|---|---|---|
| Fund | -1.76 | -1.97 | 5.42 | 8.58 | 10.70 | 10.34 | 9.27 |
| Benchmark | 10.47 | -1.02 | 5.04 | 5.44 | 7.29 | 7.41 | 7.07 |
| Active return | -12.23 | -0.95 | 0.38 | 3.14 | 3.41 | 2.93 | 2.20 |
Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: MSCI AC Asia ex-Japan Index NR, effective 1 January 2010. Benchmark data prior to 1 January 2010 is a blend of the MSCI Asia ex-Japan index and the MSCI All Country Asia ex-Japan Index NR: NR at the end of the benchmark name indicates the return is calculated including reinvesting net dividends. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties.
Net as at 31 August 2024
| 1 yr % |
3 yr % pa |
5 yr % pa |
7 yr % pa |
10 yr % pa |
15 yr % pa |
Since inception (29/09/05) % pa |
|
|---|---|---|---|---|---|---|---|
| Total return | -1.76 | -1.97 | 5.42 | 8.58 | 10.70 | 10.34 | 9.27 |
| Growth | -3.52 | -3.21 | 3.12 | 5.22 | 6.69 | 7.13 | 4.72 |
| Income | 1.77 | 1.24 | 2.29 | 3.36 | 4.01 | 3.21 | 4.55 |
Growth return is the unit price movement on exit to exit basis. Income is expressed as Total Return less growth component.
Total net returns represent past performance only. Past performance is not a reliable indicator of future performance. Returns of the Fund can be volatile and in some periods may be negative. The return of capital is not guaranteed. Benchmark: MSCI AC Asia ex-Japan Index NR, effective 1 January 2010. Benchmark data prior to 1 January 2010 is a blend of the MSCI Asia ex-Japan index and the MSCI All Country Asia ex-Japan Index NR: NR at the end of the benchmark name indicates the return is calculated including reinvesting net dividends. The dividend is reinvested after deduction of withholding tax, applying the withholding tax rate to non-resident individuals who do not benefit from double taxation treaties.
| Distribution | Distribution (CPU) | Reinvestment price |
|---|---|---|
| 30-Jun-24 | 43.8863 | $23.9765 |
CPU = cents per unit. The above cash CPU excludes imputation credits and foreign income tax offsets which are non-cash components and are reported in the end of year tax statement. If the Distribution CPU column is 0.0000 it means that nothing was distributed.
As at 31 August 2024
As at 31 August 2024
As at 31 August 2024
| % total net assets | |
|---|---|
| TAIWAN SEMICONDUCTOR MFG CO LTD | 12.2% |
| HDFC BANK LTD | 12.0% |
| FOCUS MEDIA INFORMATION TECHNOLOGY CO LTD | 8.9% |
| SAMSUNG ELECTRONICS CO LTD | 7.4% |
| TECHTRONIC INDUSTRIES CO LTD | 7.3% |
| AIA GROUP LTD | 5.7% |
| KWEICHOW MOUTAI CO LTD | 5.6% |
| YUM CHINA HOLDINGS INC | 4.6% |
| NAVER CORP | 4.4% |
| INDO TAMBANGRAYA MEGAH PT | 3.0% |
As at 31 August 2024
| Fund % | Benchmark % | Relative % | |
|---|---|---|---|
| HDFC BANK LTD | 12.0 | 0.8 | 11.2 |
| FOCUS MEDIA INFORMATION TECHNOLOGY CO LTD | 8.9 | 0.0 | 8.9 |
| TECHTRONIC INDUSTRIES CO LTD | 7.3 | 0.3 | 7.0 |
| KWEICHOW MOUTAI CO LTD | 5.6 | 0.2 | 5.4 |
| AIA GROUP LTD | 5.7 | 1.2 | 4.5 |
As at 31 August 2024
| Fund % | Benchmark % | Relative % | |
|---|---|---|---|
| TENCENT HLDGS LTD | 0.0 | 4.8 | -4.8 |
| ALIBABA GROUP HOLDING LTD | 0.0 | 2.4 | -2.4 |
| RELIANCE INDUSTRIES LTD | 0.0 | 1.6 | -1.6 |
| INFOSYS LTD | 0.0 | 1.2 | -1.2 |
| MEITUAN | 0.0 | 1.1 | -1.1 |
| Organisation | Rating |
|---|---|
| Lonsec | Highly Recommended4 The Lonsec Report is only available to financial advisers, please contact us for a copy. |
| Morningstar | Silver5 |
| Zenith | Highly Recommended6 |
This Fund is unhedged and is subject to the risk of fluctuations in international stock markets and currencies. Investors accessing the Fund through a master trust or wrap account will also bear any fees charged by the operator of such master trust or wrap account. Any apparent discrepancies in the numbers are due to rounding.
1Management costs and buy/sell spread are current as at the date of publication of this website. These fees may be subject to change in the future.
2Total returns (net) have been calculated using exit prices and take into account the applicable buy/sell spread and are net of Fidelity’s management costs, transactional and operational costs and assumes reinvestment of distributions. No allowance has been made for tax. Returns of more than one year are annualised. The return of capital is not guaranteed.
