Fidelity China Special Situations PLC — Fund Information / Factsheet 2016

Sep 30, 2016

Investment Objective

To achieve long-term capital growth from an actively managed portfolio made up primarily of securities issued by companies listed in China or Hong Kong and Chinese companies listed elsewhere. The Company may also invest in listed companies with significant interests in China and Hong Kong.

Investment Trust Facts

Launch date: Portfolio manager: Appointed to trust: Years at Fidelity: Total Net Assets (TNA): Ordinary shares in Issue: Share price: NAV: Discount:	19.04.10 Dale Nicholls 01.04.14 20 £ 1,157m 551,914,480 175.60p 209.68p 16.25%
Gross Market Gearing:	27.1%
Net Market Gearing:	22.9%

Performance Comparator

Market Index: MSCI CHINA (N)

The same index is used in the positioning tables on this factsheet. Past performance is not a reliable indicator of future results. The value of investments can go down as well as up and you may get back less than you invested.

Performance to 30.09.16 in GBP (%)

	Share Price	NAV

	1m	3m	YTD	1yr	3yr	5yr	Since 16.04.10*
Share Price Cumulative Growth	3.8	21.1	23.9	49.0	87.5	145.3	85.7
NAV Cumulative Growth	4.8	17.2	25.3	50.3	102.3	197.5	122.7
Index Cumulative Growth	3.4	17.2	23.2	31.7	39.8	78.2	39.0
Share Price Annualised Growth	-	-	-	49.0	23.3	19.7	10.1
NAV Annualised Growth	-	-	-	50.3	26.5	24.4	13.2
Index Annualised Growth	-	-	-	31.7	11.8	12.2	5.2

Basis: bid-bid with income reinvested, in GBP, net of fees.

Market indices are sourced from RIMES and other data is sourced from third-party providers such as Morningstar.

*Performance commencement date.

Key Risks

The value of investments can go down as well as up and you may not get back the amount invested. Overseas investments may be more volatile than established markets. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility.

Portfolio Manager Commentary

When it comes to China, the challenges are well understood. Growth is slowing and debt levels are rising, which makes many investors nervous about China's future prospects. The slowing headline growth should not be a surprise as the exceptional growth rates over the last decade are simply unsustainable over the longterm for economy of China's size. However, we have seen signs of stabilisation in the economy, which has improved general investor sentiment towards China, which has helped China's market performance. Following the recent improved performance from Chinese equities, net gearing has been reduced to around 20% through a combination of reducing long positions and also increasing the number of shorts in areas that now look expensive in the short-term. As new winners and losers emerge, the need for rigorous company research and prudent stock selection is more important than ever to identify those companies that are able to thrive in this evolving landscape. Many of these stocks operate in consumer-related sectors, where penetration levels are still very low compared to the developed world.

The NAV of the Trust has significantly risen over the last year and posted strong outperformance versus the Index. This has been driven by stock selection in the consumer discretionary and Industrials sectors. New Oriental Education & Technology, a private education company offering test preparation, and Zhejiang Supor Cookware, a home appliances company, have recorded strong returns. The Trust also benefited from ceramic tile manufacturer Dongpeng buying back its shares at a premium in order to reprivatise. Conversely, a holding in CT Environmental has fallen over concerns of increasing capital expenditure. The Trust remains focused on "new" China stocks with significant holdings related to the rise of the consumer and the way in which the consumer spends.

Cumulative performance in GBP (%) Performance for 12 month periods in GBP (%)

FIDELITY CHINA SPECIAL SITUATIONS PLC 30 SEPTEMBER 2016

Equity Exposure % Total Net Assets (% TNA)

	Exposure (% TNA)
Gross Market Exposure	127.1
Net Equity	122.9
Other	-9.9
Uninvested Cash	0.0

Notes on Portfolio Construction and a description of how data is calculated and presented are on page 3. Definitions of the terms used in the Equity Exposure table are in the Glossary.

Sector/Industry Exposure (% TNA)

GICS Sector	Net	Index	Relative
Information Technology	33.1	33.7	-0.6
Consumer Discretionary	32.5	8.2	24.3
Industrials	17.4	5.4	12.0
Financials	11.2	26.0	-14.7
Consumer Staples	9.7	2.3	7.4
Energy	5.0	6.1	-1.1
Materials	4.9	1.2	3.8
Health Care	4.9	2.1	2.8
Telecommunication Services	3.5	8.2	-4.7
Utilities	2.6	2.9	-0.3
Real Estate	2.0	3.9	-1.9
Total Sector Exposure	126.8	100.0
Other Index / Unclassified	-4.0	0.0
Total Equity Exposure	122.9	100.0

Market Capitalisation Exposure (% TNA)

	Net	Index	Relative
>10bn	17.6	47.9	-30.3
5-10bn	9.5	11.7	-2.2
1-5bn	26.7	17.3	9.4
0-1bn	45.6	0.9	44.7
Total Market Cap Exposure	99.3	77.7
Other Index / Unclassified	23.5	22.3
Total Equity Exposure	122.9	100.0

Country Exposure (% TNA)

	Net	Index	Relative
A-Share	10.7	0.0	10.7
B-Share	0.7	0.3	0.4
H-Share*	18.4	37.8	-19.4
Red Chips*	10.9	17.3	-6.4
Other stocks listed in hk**	47.4	22.3	25.0
Singapore	0.5	0.0	0.5
USA	25.4	22.3	3.1
Taiwan	3.2	0.0	3.2
Australia	0.3	0.0	0.3
United Kingdom	3.8	0.0	3.8
Canada	0.0	0.0	0.0
Other	1.6	0.0	0.0

Grand Total

100.00

*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 MSCI China.

122.9

Top Net Long Positions (% TNA)

	GICS Sector	Country	Net	Index	Relative
TENCENT HLDGS LTD	Information Technology	China	11.7	14.1	-2.4
ALIBABA GROUP HOLDING LTD	Information Technology	China	9.1	10.8	-1.7
CHINA PAC INS GROUP CO LTD	Financials	China	5.0	0.9	4.2
CHINA PETROLEUM & CHEM CORP	Energy	China	2.7	1.7	1.0
CITIC TELECOM INTL HLDGS LTD	Telecommunication Services	Hong Kong	2.7	0.0	2.7
CTRIP.COM INTL LTD	Consumer Discretionary	China	2.5	1.6	0.9
NETEASE INC	Information Technology	China	2.3	1.7	0.6
SHANGHAI INTL AIRPORT CO LTD	Industrials	China	1.9	0.0	1.9
VIPSHOP HLDGS LTD	Consumer Discretionary	China	1.9	0.5	1.3
HUTCHISON CHINA MEDITECH LTD	Health Care	Hong Kong	1.9	0.0	1.9

	Net	Index	Relative
CHINA PAC INS GROUP CO LTD	5.0	0.9	4.2
CITIC TELECOM INTL HLDGS LTD	2.7	0.0	2.7
SHANGHAI INTL AIRPORT CO LTD	1.9	0.0	1.9
HUTCHISON CHINA MEDITECH LTD	1.9	0.0	1.9
CT ENVIRONMENTAL GROUP LTD	1.9	0.0	1.9
SINOSOFT TECH GRP LTD	1.7	0.0	1.7
XIAOJU KUAIZHI INC	1.4	0.0	1.4
FAR EAST HORIZON LTD	1.6	0.2	1.4
VIPSHOP HLDGS LTD	1.9	0.5	1.3
DJI HOLDINGS PLC	1.2	0.0	1.2
Net Long Positions Concentration (% TNA)

	Fund	Index
Top 10	41.6	55.5
Top 20	55.7	68.0
Top 50	85.1	82.3

Top Overweight Positions (% TNA) Top Underweight Positions (% TNA)

	Net	Index	Relative
CHINA MOBILE LTD	0.0	6.8	-6.8
CHINA CONSTRUCTION BANK	0.0	5.7	-5.7
BAIDU INC	0.0	4.5	-4.5
INDUSTRIAL & COML BK CHINA	0.0	4.2	-4.2
BANK CHINA LTD	0.0	3.3	-3.3
PING AN INS GROUP CO CHINA	0.0	2.5	-2.5
LTD TENCENT HLDGS LTD	11.7	14.1	-2.4
CNOOC LTD	0.0	2.0	-2.0
CHINA LIFE INSURANCE CO LTD	0.0	1.7	-1.7
ALIBABA GROUP HOLDING LTD	9.1	10.8	-1.7

FIDELITY CHINA SPECIAL SITUATIONS PLC 30 SEPTEMBER 2016 FIDELITY INVESTMENT TRUSTS MONTHLY FACTSHEET

Fidelity China Special Situations seeks out investments in:

• Companies with good long-term prospects
• Cash generative businesses • Companies controlled by strong management teams

Ideally these factors are not well understood by the market, and are therefore not reflected in valuations. The manager also focuses on smaller companies as these tend to be less well researched and, therefore, more mispriced. However, smaller companies tend to be higher risk, so risk management is key and meeting company management teams is essential in order to understand them and monitor their progress. He also stresses that investors must take a long-term view, and patience is sometimes required for these factors to be recognised.

Overall, the manager looks for undervalued companies that can deliver over the long-term.

Approach and Style Administrative & Dealing Information

Financial Year End: Reference currency: Company domicile: Company legal structure: Capital guarantee: ISIN: SEDOL: Bloomberg: Distribution frequency: Charges made to income or capital: Ongoing Charges Figure (OCF) per year: OCF takes into account annual management charge:

31st March UK Sterling (GBP) United Kingdom Investment Trust No GB00B62Z3C74 B62Z3C7 FCSS LN Annual Both equally 1.20% (31.03.16) 1.0% (net)

This factsheet contains information about the composition of the fund at a particular point in time. It aims to help you understand how the fund manager is positioned to achieve the fund's objectives.

The Equity Exposure table provides an overall view of the fund. Net Equity represents - in percentage terms - how much of the fund is invested in the market, netting off long and short positions. The higher the figure, the more the fund will take part in any market rises (or falls). It is important to note that Net Equity can be greater than 100% (for example if the manager is using derivative contracts) and when it is, the portfolio may be described as geared.

The exposure and positioning tables on page 2 break the fund down into a number of different views, each providing a different perspective on the fund's investments.

Portfolio Construction – Explained How data is calculated and presented

Portfolio composition data has been calculated and presented according to several general principles, which are listed below.

• Aggregation: all investments, including derivatives, linked to a particular issuing company have been combined to form a total percentage holding for each company. The aggregate holding is referred to in this factsheet as a position. Where a company is listed in two separate countries, each listing may be classified as a separate issuing company. Exchange Traded Funds (ETFs) and derivatives on ETFs are treated as individual securities – ie not aggregated.

• Categorisation: for investments that have underlying securities we use the attributes of the underlying issuing company or common share to determine the appropriate sector, market capitalisation band and geographic area.

• Derivatives: all derivatives are included on an exposure basis and, where necessary, are delta-adjusted. Delta-adjusting expresses derivatives in terms of the equivalent number of shares that would be needed to generate the same return.

• "Basket" securities: securities that represent a number of company shares – like index futures or options – are allocated to categories (such as country) whenever possible. Otherwise they are included in the "Other Index / Unclassified" category.

Glossary / Additional Notes

Equity Exposure notes

GROSS MARKET EXPOSURE

Gross Market Exposure is the total of long exposures, plus the total of short exposures, and less the total of exposures hedging the portfolio, expressed as a percentage of shareholders' funds (Total Net Assets).

NET EQUITY

The net positive exposure to the market with short and hedge positions subtracted from long positions.

FIDELITY CHINA SPECIAL SITUATIONS PLC 30 SEPTEMBER 2016

Glossary / Additional Notes

OTHER

The value of any non-equity investments (excluding cash funds) expressed as a percentage of fund TNA.

UNINVESTED CASH

This is 100% minus the fund's Net Equity exposure and minus Other. This leaves any residual cash exposure that is not invested in shares or via derivatives.

Investment Trust Facts

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

Gearing is the Market Exposure figure (either gross or net) expressed in excess of Total Net Assets. It represents the additional exposure to the market above Shareholders' Funds.

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.

General notes

TOTAL NET ASSETS (TNA)

The Company's total assets minus its total liabilities - also known as Shareholders' Funds. It represents the amount by which a company is financed through common and preferred shares.

INDEX

The index used in the positioning tables on page 2 is the index defined in the Performance Comparator section on page 1.

TOP NET LONG POSITIONS

Those companies in which the largest percentages of the fund's total net assets are effectively invested. Positions in other funds – including ETFs (Exchange Traded Funds) - can appear in this table, but index derivatives form part of an "Other Index / Unclassified" category which will not appear.

TOP OVERWEIGHT & UNDERWEIGHT POSITIONS

Those positions which have the largest active weight relative to the index. Positions in other funds - including ETFs (Exchange Traded Funds) - can appear in this table, but index derivatives form part of an "Other Index / Unclassified" category which will not appear. In the underweight table, any short position names have been withheld in line with Fidelity's disclosure policy.

NET LONG POSITIONS CONCENTRATION

Illustrates the weight of the top 10, 20 and 50 positions in the fund and the weight of the top 10, 20 and 50 positions in the index. It does not attempt to show the coincidence of security ownership between fund and index. The sector/industry classification used (ie GICS, ICB, TOPIX and IPD) varies by fund. Full descriptions of GICS, ICB, TOPIX and IPD can be found in the glossary.

Glossary / Additional Notes

ONGOING CHARGES

The ongoing charges figure represents the charges taken from the fund over a year. It is calculated at the fund's financial year end and may vary from year to year. For new funds, the ongoing charges figure is estimated until the fund's financial year end.

The types of charges included in the ongoing charges figure are management fees, administration fees, custodian and depositary fees and transaction charges, shareholder reporting costs, regulatory registration fees, Directors fees (where applicable) and bank charges.

It excludes: performance fees (where applicable); portfolio transaction costs, except in the case of an entry/exit charge paid by the fund when buying or selling units in another collective investment undertaking.

For more information about charges (including details of the fund's financial year end), please consult the charges section in the most recent Annual Report.

SECTOR INDUSTRY CLASSIFICATION

GICS: Global Industry Classification Standard (GICS) was developed by Standard & Poor's and MSCI Barra. GICS consists of 11 sectors, 24 industry groups, 68 industries and 157 sub-industries.

More information is available at http://www.standardandpoors.com/indices/gics/en/us

ICB: The Industry Classification Benchmark (ICB) is an industry classification developed by Dow Jones and FTSE. It is used to segregate markets into sectors within the macroeconomy. The ICB uses a system of 10 industries, partitioned into 20 supersectors, which are further divided into 41 sectors, which then contain 114 subsectors. More information is available at http://www.icbenchmark.com/

Legal Information

Fidelity International refers to the group of companies which form the global investment management organisation that provides information on products and services in designated jurisdictions outside of North America.

Fidelity only offers information on its own products and services and does not provide investment advice based on individual circumstances.

This communication is not directed at, and must not be acted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required.

Unless otherwise stated, all views are those of Fidelity.

Reference in this document to specific securities or funds should not be construed as a recommendation to buy or sell them, 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. The research and analysis used in this documentation is gathered by Fidelity for its use as an investment manager and may have already been acted upon for its own purposes.

Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited.

This fund is managed by FIL Investments International.

Morningstar annualised growth rates, total return, sector median performance and ranks - Data Source - © 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Before investing you should read the latest Annual Report and Key Features Document, which are available from www.fidelity.co.uk/its.

Issued by FIL Investment Services (UK) Limited, a firm authorised and regulated in the UK by the Financial Conduct Authority. FIL Investment Services (UK) Limited is registered in England and Wales under the company number 2016555. The registered office of the company is Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ, United Kingdom.