Fidelity China Fund
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Investment objective

To achieve returns in excess of the MSCI China Index NR over the suggested minimum investment time period of five to seven years.

Invests into typically between 70 to 100 Chinese companies.  

Uses a bottom-up stock selection process that focuses on quality business models and management teams out of favour due to short-term macro reasons.

Through a rigorous portfolio construction process, the best ideas likely to benefit from the country’s growth dynamics will be selected for the portfolio.

Key facts

About this fund
Unit prices (at 15/08/18) Buy 33.0445 / Sell 32.7811 Unit price history
Buy/sell spread 0.40%/0.40%
Management costs1 1.22% p.a. Fee disclosure document
Fund size (at 15/08/18) A$92.80M
Inception date 29 September 2005
Distribution frequency Annually
Currency Australian dollar
Benchmark MSCI China Index NR
About the manager
Portfolio manager Jing Ning
Appointed to fund 31 October 2013
Location Hong Kong
Joined Fidelity 2013
Unique identifiers
APIR code FID0011AU
ARSN code 116072649
mFund code FIL11

Fund performance2

Net returns as at 31 July 2018

Timeframe Fund Benchmark Active return
1 yr % 17.90 16.59 1.31
3 yr % pa 10.28 9.85 0.43
5 yr % pa 17.66 14.90 2.76
7 yr % pa 14.11 12.43 1.68
10 yr % pa 10.57 7.99 2.58
Since inception (29/09/05) % pa 14.52 11.37 3.15
Timeframe 1 yr
%
3 yr
% pa
5 yr
% pa
7 yr
% pa
10 yr
% pa
Since inception
(29/09/05) % pa
Fund 17.90 10.28 17.66 14.11 10.57 14.52
Benchmark 16.59 9.85 14.90 12.43 7.99 11.37
Active return 1.31 0.43 2.76 1.68 2.58 3.15

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 China 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.

See for yourself how the fund has performed since inception. The chart below represents the value now of $10,000 invested in the Fidelity China Fund in September 2005 compared with $10,000 invested in the MSCI China Index NR.

    Fidelity China Fund
    0
    MSCI China Index NR
    0

    Chart as at: 31 July 2018

    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 China 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 July 2018

    Total return Growth Income
    1 yr % 17.9 6.27 11.63
    3 yr % pa 10.28 2.65 7.63
    5 yr % pa 17.66 12.01 5.65
    7 yr % pa 14.11 9.63 4.48
    10 yr % pa 10.57 7.11 3.46
    Since inception (29/09/05) % pa 14.52 9.96 4.56
    1 yr
    %
    3 yr
    % pa
    5 yr
    % pa
    7 yr
    % pa
    10 yr
    % pa
    Since inception
    (29/09/05) % pa
    Total return 17.9 10.28 17.66 14.11 10.57 14.52
    Growth 6.27 2.65 12.01 9.63 7.11 9.96
    Income 11.63 7.63 5.65 4.48 3.46 4.56

    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 China 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.

    Sectors, holdings and distributions

    As at 30 June 2018

    As at 30 June 2018

    % total net assets
    TENCENT HLDGS LTD 7.7%
    CHINA CONSTRUCTION BANK 7.0%
    ALIBABA GROUP HOLDING LTD 6.9%
    INDUSTRIAL & COML BK CHINA 5.6%
    CHINA MOBILE LTD 4.6%
    CNOOC LTD 4.3%
    CHINA LIFE INSURANCE CO LTD 4.2%
    CHINA OVERSEAS LAND & INV LTD 2.9%
    CHINA PETROLEUM & CHEM CORP 2.8%
    CHINA RES LD LTD 2.4%

    As at 30 June 2018

    Fund % Benchmark % Relative %
    CHINA LIFE INSURANCE CO LTD 4.2 1.1 3.0
    CNOOC LTD 4.3 1.8 2.5
    INDUSTRIAL & COML BK CHINA 5.6 3.0 2.5
    CHINA OVERSEAS LAND & INV LTD 2.9 0.7 2.2
    GREE ELECTRIC APPLIANCES INC OF ZHUHAI 1.9 0.0 1.9

    As at 30 June 2018

    Fund % Benchmark % Relative %
    TENCENT HLDGS LTD 7.7 16.7 - 9.0
    ALIBABA GROUP HOLDING LTD 6.9 12.5 - 5.6
    BAIDU INC 0.0 3.9 - 3.9
    PING AN INS GROUP CO CHINA LTD 0.0 2.8 - 2.8
    BANK OF CHINA LTD 0.0 2.3 - 2.3
    Distribution Distribution (CPU) Reinvestment price
    30-Jun-18 372.753 $34.061

    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. 

    Fund ratings3

    Organisation Rating
    Zenith Recommended4

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    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.

    2The returns shown have been calculated using the net asset value of the Fund from one period to the next. The returns include any re-invested distributions and are after fees and expenses. No allowance has been made for taxation or for any fees charged by operators of master trusts or wrap accounts through which the products are offered. For periods greater than one year returns have been annualised.

    3You should refer to respective research houses (and their disclaimers below) to obtain further information about the meaning of the rating and the rating scale. Ratings are only one factor to be taken into account when deciding whether to invest. Ratings are subject to change without notice and may not be regularly updated.  Ratings are current as at date (s) stated below. Fidelity pays a fee to some research houses for rating our funds.

    4The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned October 2017) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines

    Why this fund

    A strong twelve-year track record with more than 20 years’ experience investing in China and rare access to local companies

    Access to China’s growth story by investing in some of the best undiscovered opportunities.

    A proven stock selection process informed by 25 on-the-ground analysts.

    Outlook for 2017

    2017 is an extremely important year for China. Fears about China’s economy are shaking global markets and capital is leaving the country at an unprecedented price. What are the market risks to be aware of? What is the outlook for the Chinese economy?

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    More growth to come from Asia

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    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.

    2The returns shown have been calculated using the net asset value of the Fund from one period to the next. The returns include any re-invested distributions and are after fees and expenses. No allowance has been made for taxation or for any fees charged by operators of master trusts or wrap accounts through which the products are offered. For periods greater than one year returns have been annualised.

    3You should refer to respective research houses (and their disclaimers below) to obtain further information about the meaning of the rating and the rating scale. Ratings are only one factor to be taken into account when deciding whether to invest. Ratings are subject to change without notice and may not be regularly updated.  Ratings are current as at date (s) stated below. Fidelity pays a fee to some research houses for rating our funds.

    4The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned October 2017) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines