Fidelity China Special Situations PLC — Fund Information / Factsheet 2013

Feb 20, 2013

FIDELITY CHINA SPECIAL SITUATIONS PLC

Fidelity China Special Situations PLC is focused on the long-term growth potential of China. The portfolio is 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.

FIDELITY CHINA SPECIAL SITUATIONS PLC DETAILS TO 31.01.13

Share price:	95.75p
NAV:	95.14p
Discount:	-0.64%
Gearing:	20.23%
Ordinary shares in
issue:	655,229,480
Launch date:	19/04/2010
Portfolio Manager:	Anthony Bolton
Appointed to trust:	19/04/2010
Years at Fidelity: 34

Investment available via ISA and Share Plan

AS AT 31.01.13

PORTFOLIO MANAGER UPDATE

Investor sentiment has been improving as GDP, retail sales and power generation data indicates the economy is troughing. There have also been some initial signals that company earnings may have bottomed while the end of the leadership contest in November has removed political uncertainty. With regards to the once in-a-decade leadership change, there were no major surprises and the key messages coming from them points towards a focus on efficiency improvements and higher quality GDP growth. More focus is expected to be placed on the acceleration of urbanisation, income redistribution and a generally more pro-consumption policy to help stimulate domestic demand.

I continue to think that the China story is largely a domestic one and I am looking to capitalise on a number of themes based around urbanisation and subsequent growth of the middle class in China. As a result, I find many ideas in consumer related names as the population spends its increased income. I also invest in technology firms, particularly in the internet space, as I believe this is underpenetrated and a key medium for information sharing and the trade of goods in a vast country like China. Meanwhile, an increasingly prosperous nation demands improved health care and there are opportunities to invest in firms that will benefit from this trend. Also within health care, there are companies who have cost advantages versus international peers and use technological improvements to grow further. Finally, we are likely to see financial reforms in China, ranging from the opening up of credit markets away from Government controlled lending, to the internationalisation of the Reminbi, which creates further opportunities for investors.

Updated January 2013

Anthony Bolton, Portfolio Manager

MARKET CAP ALLOCATION TOP 10 POSITIONS AS AT 31.01.13

			%	Benchmark Weight
Large Cap >£5bn Medium Cap - between £1-5bn Small Cap - less than £1bn	% (Total Gross Assets) 26.2 22.1 51.8	TENCENT HOLDINGS PING AN INSURANCE (GROUP) COMPANY OF CHINA CITIC SECURITIES COMPANY AIA GROUP		4.8 2.3 0.4 0.0
		HSBC HOLDINGS WING HANG BANK SAIC MOTOR CORPORATION	3.1 3.1 2.9 2.4	0.0 0.0 0.0
		HUANENG POWER INTERNATIONAL ASIAINFO-LINKAGE ALIBABA GROUP	2.4 2.3 2.1	0.5 0.0 0.0

Source: FIL Ltd, 31 January 2013. Benchmark is MCSI China Index (Net Luxembourg tax). All data in the above includes any derivative exposures as an economically equivalent position in the underlying asset.

PERFORMANCE RECORD
Cumulative Growth	YTD	1mth	6mths	1 yr	3 yrs	5 yrs	10 yrs	Since 19.04.10
Share Price	13.4%	13.4%	31.9%	20.0%	-	-	-	-3.0%
NAV	10.8%	10.8%	27.5%	18.2%	-	-	-	-2.7%
MSCI China Index (Net Luxembourg tax)	6.8%	6.8%	19.9%	14.8%	-	-	-	5.9%

Source of performance: Fidelity/Datastream, cumulative growth, total return as at 31 January 2013, bid-bid with net income reinvested. These figures do not include an initial charge.

Please remember that past performance is not a guide to what may happen in the future. The value of investments can go down as well as up and you may not get back the amount invested. Overseas investments may be subject to currency fluctuations. Investments in small and emerging markets may be more volatile than more established markets. Please remember the eligibility to invest in an ISA depends on individual circumstances and tax rules may be subject to change.

FIDELITY INVESTMENT TRUSTS 31 JANUARY 2013

INDUSTRY BREAKDOWN AS AT 31.01.13

SHARE TYPE BREAKDOWN AS AT 31.01.13

	Total Gross	Benchmark
	Assets)	Weight
'A' & 'B' Share	19.2	0.9
H-Share	5.3	49.0
Red Chips*	1.8	25.7
Other Stocks Listed in HK**	46.7	24.4
China Stocks Listed in US	18.8	-
China Stocks Listed elsewhere	5.8	-
Others	2.5	-
Total	100	100

Benchmark is MSCI China Index (Net Luxembourg tax). Source: FIL Ltd, 31 January 2013. Benchmark is MCSI China Index (Net Luxembourg tax). *As classified in the website of HKEx **Non-H-share and non-red-Chip companies listed in Hong Kong, held by the fund or as part of MCSI China.

GLOSSARY

NAV

The total value of a company's assets less the total value of its liabilities is its net asset value (NAV). For valuation purposes it is common to divide net assets by the number of shares in issue to give the net assets per share. NAV calculations can include or exclude current financial year income. For the purposes of this factsheet, they are valued with assets including income and costs and with debt valued at the market.

DISCOUNT

If the share price of an investment company is lower than the net asset value (NAV) per share, the company is said to be trading at a discount. The discount is shown as a percentage of the NAV.

GEARING EXPOSURE

Investment trusts have the ability to borrow additional money to invest, known as gearing. The trust has the ability to use bank loans, bank overdrafts and Contracts for Difference (CFDs) to increase its exposure to stocks. CFDs are used as a way of gaining exposure to the price movements of shares without buying the underlying shares directly.

PREMIUM

If the share price of an investment company is higher than the net asset value (NAV) per share, the company is said to be trading at a premium. The premium is shown as a percentage of the NAV.

TOP 10 POSITIONS

The 10 largest investments are shown as a % of the total market exposure of the investment portfolio, including exposure to investments through derivatives.

CHINA H SHARES

China H Shares are shares in companies incorporated in the People's Republic of China (PRC) which are listed on the Hong Kong Stock Exchange. China H Shares are available to non- Chinese investors and are traded in Hong Kong Dollars on the Hong Kong Stock Exchange.

CHINA A SHARES

China A Shares are traded on the Chinese Stock Exchanges in Renminbi. Foreign investors had historically been unable to participate in the China A Share market. However, following China's introduction of the QFII program in 2002, a legal framework has been provided for licensed QFIIs to invest in China A Shares on the Chinese Stock Exchanges and certain other securities previously not eligible for investment by foreign investors.

CHINA B SHARES

China B Shares are traded on the Shenzhen Stock Exchange and Shanghai Stock Exchange in Hong Kong Dollars and US Dollars, respectively. China B Shares were originally intended to be available only to foreign individual and institutional investors. However, since February 2001, China B Shares have been available to domestic individual investors who trade through legal foreign currency accounts.

RED CHIPS

Red Chip is the term used to describe companies incorporated outside China but which are based in mainland China. Red Chips are listed on, and are required to observe the filing and reporting requirements of, the Hong Kong Stock Exchange. Red Chips typically have a significant portion of their business interests located in mainland China and many are owned, either directly or indirectly, by organisations or enterprises controlled by the Chinese state, provinces or municipalities.

FAIR VALUE

The fair value of the listed investments is measured at bid prices or last prices quoted, depending on the convention of the exchange on which they are listed. Where permitted, unlisted investments, where there is not an active market, are valued using an appropriate valuation technique so as to establish what the transaction price would have been and derivative instruments are valued at the quoted trade price for the contract.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment. If you are unsure of the suitability of an investment, please contact a financial adviser.

For more information contact us on 0800 41 41 10, 9am – 6pm Monday to Saturday or go to www.fidelity.co.uk/chinaspecial