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Fidelity China Special Situations PLC Fund Information / Factsheet 2021
5147_prs_2021-03-22_3eca7eac-bed0-450c-a835-40ba806224e5.pdf
Fund Information / Factsheet
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FIDELITY INVESTMENT TRUSTS
FIDELITY CHINA SPECIAL SITUATIONS PLC
MONTHLY FACTSHEET
28 FEBRUARY 2021
Investment Objective
To achieve long-term capital growth from an actively managed portfolio made up primarily of securities issued by companies listed in China and Chinese companies listed elsewhere. The Company may also invest in listed companies with significant interests in China.
Investment Trust Facts
| Launch date: | 19.04.10 |
|---|---|
| Portfolio manager: | Dale Nicholls |
| Appointed to trust: | 01.04.14 |
| Years at Fidelity: | 25 |
| Total Net Assets (TNA): | £ 2,244m |
| Ordinary shares in Issue: | 515,463,483 |
| Share price: | 434.50p |
| NAV: | 435.37p |
| Discount: | 0.20% |
| Gross Market Gearing: | 29.1% |
| Net Market Gearing: | 21.2% |
Performance Comparator
Market Index: MSCI China Index (Net)
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.
Cumulative performance in GBP (%)
Performance is shown for the last five years (or since launch for funds launched within that period).
Performance to 28.02.21 in GBP (%)
Portfolio Manager Commentary
The economic backdrop for China remains supportive given the continued recovery, underpinned by strong control over the COVID-19 virus. Small localised outbreaks have been handled effectively and have not impacted China's overall economic momentum. This is reflected in its Purchasing Managers' Index (PMI) data, which has recovered well ahead of other Asian countries. Its fourth quarter GDP of 6.5% exceeded expectations; China is the only major economy to post positive GDP growth for full-year 2020.
Government stimulus has clearly been a factor in supporting the recovery, but overall it has been more restrained and targeted than measures seen in most western economies. Market valuations are clearly not as attractive as they were in early 2020, and we have seen some pull back in the markets but for China it continues to trade at a significant discount to the US market despite arguably better growth prospects.
Over the 12 months to 28th February 2021, the Trust's NAV registered 74.2% in returns, outperforming its reference index which delivered 30.8% over the same period. Meanwhile, the Trust's share price rose 97.2%. Amongst the top contributors were the Trust's high-conviction holding in China Meidong Auto Holdings and Yadea Group, the largest two-wheeler e-bike manufacturer in China with around 25% market share. Not holding Meituan and Nio detracted from performance after they performed strongly over the reporting period.
Performance for 12 month periods in GBP (%)
| 1m | 3m | YTD | 1yr | 3yr | 5yr | Since 16.04.10* | |
|---|---|---|---|---|---|---|---|
| Share Price Cumulative Growth | 3.9 | 15.3 | 13.9 | 97.2 | 86.4 | 275.3 | 387.8 |
| NAV Cumulative Growth | 3.0 | 15.9 | 11.6 | 74.2 | 62.7 | 209.4 | 387.6 |
| Index Cumulative Growth | -2.8 | 4.3 | 3.9 | 30.8 | 29.0 | 151.0 | 154.7 |
| Share Price Annualised Growth | - | - | - | 97.2 | 23.1 | 30.3 | 15.7 |
| NAV Annualised Growth | - | - | - | 74.2 | 17.6 | 25.3 | 15.7 |
| Index Annualised Growth | - | - | - | 30.8 | 8.9 | 20.2 | 9.0 |
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.
F
Fidelity
INTERNATIONAL
FIDELITY INVESTMENT TRUSTS
FIDELITY CHINA SPECIAL SITUATIONS PLC
MONTHLY FACTSHEET
28 FEBRUARY 2021
Equity Exposure % Total Net Assets (% TNA)
| Exposure (% TNA) | |
|---|---|
| Gross Market Exposure | 129.1 |
| Net Equity | 121.2 |
| Other | -3.2 |
| 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 |
|---|---|---|---|
| Consumer Discretionary | 36.6 | 35.2 | 1.4 |
| Communication Services | 24.9 | 21.5 | 3.4 |
| Financials | 14.6 | 13.5 | 1.1 |
| Information Technology | 13.3 | 5.6 | 7.7 |
| Health Care | 13.1 | 6.5 | 6.6 |
| Industrials | 12.0 | 4.4 | 7.7 |
| Materials | 5.6 | 2.3 | 3.3 |
| Consumer Staples | 4.2 | 4.3 | 0.0 |
| Energy | 1.8 | 1.1 | 0.7 |
| Real Estate | 1.4 | 3.7 | -2.3 |
| Utilities | 0.4 | 1.8 | -1.4 |
| Total Sector Exposure | 128.0 | 100.0 | |
| Other Index / Unclassified | -6.8 | 0.0 | |
| Total Equity Exposure | 121.2 | 100.0 |
Market Capitalisation Exposure (% TNA)
| GBP | Net | Index | Relative |
|---|---|---|---|
| >10bn | 41.3 | 72.0 | -30.7 |
| 5-10bn | 8.1 | 9.5 | -1.4 |
| 1-5bn | 29.4 | 7.4 | 22.0 |
| 0-1bn | 25.6 | 0.1 | 25.5 |
| Total Market Cap Exposure | 104.4 | 89.1 | |
| Other Index / Unclassified | 16.8 | 10.9 | |
| Total Equity Exposure | 121.2 | 100.0 |
Country Exposure (% TNA)
| Net | Index | Relative | |
|---|---|---|---|
| China A-Shares | 16.8 | 11.9 | 4.9 |
| China B-Shares | 0.2 | 0.1 | 0.1 |
| China H-Shares* | 19.8 | 16.8 | 3.0 |
| Red Chips* | 4.7 | 3.8 | 0.9 |
| Listed in HK** | 41.6 | 34.9 | 6.7 |
| Listed in Singapore | 0.0 | 0.0 | 0.0 |
| Listed in USA | 29.4 | 32.5 | -3.3 |
| Listed in Taiwan | 1.4 | 0.0 | 1.4 |
| Listed in Japan | 0.8 | 0.0 | 0.8 |
| Listed in United Kingdom | 1.8 | 0.0 | 1.8 |
| Unlisted | 5.9 | 0.0 | 5.9 |
| Other | -1.1 | 0.0 | -1.1 |
| Grand Total | 121.2 | 100.0 | 21.2 |
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.
Top Net Long Positions (% TNA)
| GICS Sector | |
|---|---|
| TENCENT HLDGS LTD | Communication Services |
| ALIBABA GROUP HOLDING LTD | Consumer Discretionary |
| 21VIANET GROUP INC | Information Technology |
| PING AN INS GROUP CO CHINA LTD | Financials |
| WUXI APPTEC CO LTD | Health Care |
| CHINA PAC INS GROUP CO LTD | Financials |
| NOAH HLDGS LTD | Financials |
| SKSHU PAINT CO LTD | Materials |
| KUAISHOU TECHNOLOGY | Communication Services |
| INTRON TECHNOLOGY HOLDINGS LTD | Consumer Discretionary |
Top Overweight Positions (% TNA)
| Net | Index | Relative | |
|---|---|---|---|
| 21VIANET GROUP INC | 3.1 | 0.0 | 3.1 |
| WUXI APPTEC CO LTD | 2.9 | 0.3 | 2.6 |
| NOAH HLDGS LTD | 2.4 | 0.0 | 2.4 |
| SKSHU PAINT CO LTD | 2.3 | 0.0 | 2.3 |
| KUAISHOU TECHNOLOGY | 2.3 | 0.0 | 2.3 |
| CHINA PAC INS GROUP CO LTD | 2.6 | 0.5 | 2.1 |
| INTRON TECHNOLOGY HOLDINGS | 1.9 | 0.0 | 1.9 |
| ICLICK INTERACTIVE ASIA-ADR | 1.7 | 0.0 | 1.7 |
| HUTCHISON CHINA MEDITECH LTD | 1.8 | 0.1 | 1.7 |
| ASIA CUANON TECHNOLOGY | 1.5 | 0.0 | 1.5 |
| SHANGHAI CO LTD | |||
| Net Long Positions Concentration (% TNA) | |||
| Fund | Index | ||
| --- | --- | --- | |
| Top 10 | 43.3 | 49.6 | |
| Top 20 | 59.0 | 59.7 | |
| Top 50 | 89.9 | 72.3 |
Top Underweight Positions (% TNA)
| Net | Index | Relative | |
|---|---|---|---|
| MEITUAN | 0.0 | 4.9 | -4.9 |
| ALIBABA GROUP HOLDING LTD | 10.7 | 14.1 | -3.3 |
| TENCENT HLDGS LTD | 12.2 | 15.3 | -3.1 |
| JD.COM INC | 0.0 | 2.5 | -2.5 |
| CHINA CONSTRUCTION BANK | 0.0 | 2.4 | -2.4 |
| BAIDU INC | 0.0 | 2.4 | -2.4 |
| Short Position - name withheld | -0.4 | 1.8 | -2.3 |
| PINDUODUO INC | 0.0 | 2.0 | -2.0 |
| XIAOMI CORP | 0.0 | 1.5 | -1.5 |
| INDUSTRIAL & COML BK CHINA | 0.0 | 1.3 | -1.3 |
FIDELITY INVESTMENT TRUSTS
FIDELITY CHINA SPECIAL SITUATIONS PLC
MONTHLY FACTSHEET
28 FEBRUARY 2021
Approach and Style
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.
Administrative & Dealing Information
| Financial Year End: | 31st March |
|---|---|
| Reference currency: | UK Sterling (GBP) |
| Company domicile: | United Kingdom |
| Company legal structure: | Investment Trust |
| Capital guarantee: | No |
| ISIN: | GB00B62Z3C74 |
| SEDOL: | B62Z3C7 |
| Bloomberg: | FCSS LN |
| Distribution frequency: | Annual |
| Charges made to income or capital: | 25/75* |
| Other Ongoing Costs (including AMC/excluding Portfolio transaction costs): | 1.25% |
| Portfolio Transaction Costs: | 0.56% |
| Annual Management Charge: | 0.90% (net assets) +/- 0.20% (based on performance relative to the Market Index) |
| Last VMF adjustment (+/- 0.2%) applied at month end: | +0.20% |
Portfolio Construction - Explained
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 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 INVESTMENT TRUSTS
FIDELITY CHINA SPECIAL SITUATIONS PLC
MONTHLY FACTSHEET
28 FEBRUARY 2021
Glossary / Additional Notes
OTHER
The value of any non-equity investments (excluding cash funds) expressed as a percentage of 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.
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.
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 investments is initially taken to be their cost and is subsequently measured as follows: Listed investments are valued at bid prices, or last market prices, depending on the convention of the exchange on which they are listed; and
Unlisted investments are investments which are not quoted, or are not frequently traded, are stated at the Directors' best estimate of fair value and take account of the cost of the investment, recent arm's length transactions in the same or similar investments and financial performance of the investment since purchase.
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 trust'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 trust 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 (i.e. GICS, ICB, TOPIX and IPD) varies by fund. Full descriptions can be found below.
FIDELITY INVESTMENT TRUSTS
FIDELITY CHINA SPECIAL SITUATIONS PLC
MONTHLY FACTSHEET
28 FEBRUARY 2021
Glossary / Additional Notes
ONGOING COSTS (KID)
These include Portfolio transaction costs (the costs of us buying and selling underlying investments) and Other ongoing costs (the costs that we take each year for managing the investment).
These are based on the methodology prescribed by EU Regulation (PRIIPS) and differ from other presentations of costs such as the Ongoing Charge Figure (OCF) in the Company's Annual Report & Accounts.
PORTFOLIO TRANSACTION COSTS
These are costs incurred when trading underlying investments.
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 Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP, United Kingdom.
F
Fidelity
INTERNATIONAL