Fidelity China Special Situations PLC

Fund Information / Factsheet • Dec 20, 2021

Investment Objective

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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:	26
Total Net Assets (TNA):	£ 1,732m
Ordinary shares in Issue:	514,447,254
Share price:	311.00p
NAV:	336.58p
Discount:	7.60%
Gross Market Gearing:	28.2%
Net Market Gearing:	21.1%

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.

Performance is shown for the last five years (or since launch for funds launched within that period).

Performance to 30.11.21 in GBP (%)

	1m	3m	YTD	1yr	3yr	5yr	Since 16.04.10*
Share Price Cumulative Growth	-3.3	-10.6	-17.5	-16.5	63.2	84.5	253.3
NAV Cumulative Growth	-2.5	-7.1	-12.8	-9.4	54.0	71.0	281.2
Index Cumulative Growth	-2.6	-4.2	-16.5	-16.2	17.1	46.3	104.8
Share Price Annualised Growth	-	-	-	-16.5	17.7	13.0	11.5
NAV Annualised Growth	-	-	-	-9.4	15.5	11.3	12.2
Index Annualised Growth	-	-	-	-16.2	5.4	7.9	6.4

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

The recent correction in technology names has meant that the risk/reward payoff has become a great deal more favourable towards these companies. Although risk of new regulations remain, we appear to be near or close to a "peak" with regards to regulation-related news flow. The Chinese government has ambitious long-term goals for economic development and innovation, which will be difficult to achieve without a vibrant private sector.

Chinese equities have fallen over the last 12 months due to tough regulations targeting a raft of areas such as education, data privacy, cyber security and anti-monopoly concerns. Moves to address the sharp rise in coal prices has hurt energy names, while real estate stocks remain under pressure as a planned pilot property tax scheme affected home buyer sentiment. Nevertheless, the recent rebound in China's markets indicate that investors may have fully priced in regulatory concerns.

Over the last few months, stocks in industries embroiled in regulatory changes, including 21vianet and fintech firm Linklogis detracted from returns. However, stocks that are at the forefront of China's push for cleaner energy, such as Titan Wind Energy, performed strongly.

Over the 12 months to 30 November 2021, the Trust's NAV fell by 9.4%, outperforming its reference index, which delivered -16.2% over the same period. The Trust's share price fell 16.5% over the same period.

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

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FIDELITY CHINA SPECIAL SITUATIONS PLC 30 NOVEMBER 2021

Equity Exposure % Total Net Assets (% TNA)

	Exposure (% TNA)
Gross Market Exposure	128.2
Net Equity	121.1
Other	-2.8
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	28.4	31.5	-3.1
Communication Services	21.7	18.3	3.4
Industrials	18.6	5.5	13.1
Information Technology	17.9	6.9	11.0
Health Care	15.8	7.6	8.2
Financials	13.5	13.7	-0.2
Materials	8.1	3.2	4.9
Energy	2.3	1.5	0.9
Consumer Staples	2.1	5.4	-3.3
Utilities	1.1	2.4	-1.3
Real Estate	1.1	4.1	-3.0
Total Sector Exposure	130.6	100.0
Other Index / Unclassified	-9.5	0.0
Total Equity Exposure	121.1	100.0

Market Capitalisation Exposure (% TNA)

GBP	Net	Index	Relative
>10bn	28.4	72.5	-44.1
5-10bn	16.9	12.3	4.6
1-5bn	31.3	9.8	21.5
0-1bn	35.1	0.3	34.8
Total Market Cap Exposure	111.6	94.8
Other Index / Unclassified	9.5	5.2
Total Equity Exposure	121.1	100.0

Country Exposure (% TNA)

	Net	Index	Relative
China A-Shares	25.8	15.5	10.3
China B-Shares	0.3	0.1	0.2
China H-Shares*	17.5	18.6	-1.1
Red Chips*	5.7	4.6	1.1
Listed in HK**	38.4	44.4	-6.0
Listed in Singapore	0.7	0.0	0.7
Listed in USA	17.1	16.8	0.3
Listed in Taiwan	1.3	0.0	1.3
Listed in Japan	1.3	0.0	1.3
Listed in United Kingdom	2.2	0.0	2.2
Listed in Germany	0.8	0.0	0.8
Unlisted	11.5	0.0	11.5
Other	-1.5	0.0	-1.5
Grand Total *As classified in the website of HKEx.	121.1	100.0	21.1

**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	Country	Net	Index	Relative
TENCENT HLDGS LTD	Communication Services	China	11.2	13.1	-1.9
ALIBABA GROUP HOLDING LTD	Consumer Discretionary	China	8.0	9.6	-1.5
WUXI APPTEC CO LTD	Health Care	China	4.4	0.4	3.9
NOAH HLDGS LTD	Financials	China	2.7	0.0	2.7
SKSHU PAINT CO LTD	Materials	China	2.3	0.0	2.2
HUTCHISON CHINA MEDITECH LTD	Health Care	Hong Kong	2.2	0.1	2.1
CHINA PAC INS GROUP CO LTD	Financials	China	2.1	0.4	1.7
PONY AI INC	Consumer Discretionary	USA	1.9	0.0	1.9
CHINA LIFE INSURANCE CO LTD	Financials	China	1.7	0.5	1.2
INTRON TECHNOLOGY HOLDINGS LTD	Consumer Discretionary	China	1.7	0.0	1.7

Top Overweight Positions (% TNA)

	Net	Index	Relative
WUXI APPTEC CO LTD	4.4	0.4	3.9
NOAH HLDGS LTD	2.7	0.0	2.7
SKSHU PAINT CO LTD	2.3	0.0	2.2
HUTCHISON CHINA MEDITECH LTD	2.2	0.1	2.1
PONY AI INC	1.9	0.0	1.9
CHINA PAC INS GROUP CO LTD	2.1	0.4	1.7
INTRON TECHNOLOGY HOLDINGS	1.7	0.0	1.7
LTD ZHEJIANG DAHUA TECH CO LTD	1.7	0.0	1.6
CHIME BIOLOGICS LTD (Convertible Bond)	1.6	0.0	1.6
VENTUROUS HOLDINGS LIMITED	1.5	0.0	1.5

Net Long Positions Concentration (% TNA)

	Fund	Index
Top 10	38.1	41.7
Top 20	53.3	53.0
Top 50	85.9	67.8

Top Underweight Positions (% TNA)

	Net	Index	Relative
MEITUAN	0.7	4.7	-4.0
JD.COM INC	0.0	2.8	-2.8
Short Position - name withheld	-0.5	2.1	-2.5
CHINA CONSTRUCTION BANK	0.0	2.4	-2.4
Short Position - name withheld	-0.9	1.4	-2.3
TENCENT HLDGS LTD	11.2	13.1	-1.9
WUXI BIOLOGICS (CAYMAN) INC	0.0	1.9	-1.9
PING AN INS GROUP CO CHINA	0.1	1.9	-1.8
LTD BAIDU INC	0.0	1.6	-1.6
Short Position - name withheld	-0.8	0.7	-1.6

Full portfolio listings, with the appropriate time lag as agreed by the Board, are available on request from Fidelity Investment Trusts. Figures may not always sum to totals due to rounding

FIDELITY CHINA SPECIAL SITUATIONS PLC 30 NOVEMBER 2021 FIDELITY INVESTMENT TRUSTS MONTHLY FACTSHEET

(based on performance relative to the Market

Index) +0.20%

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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.

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.

Approach and Style 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) on the
	first £1.5bn of assets and
	0.70% (net) on funds in
	excess of £1.5bn. +/- 0.20%

Last VMF adjustment (+/- 0.2%) applied at month end:

*Variable element of fee all charged to capital

Independent Assessment

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.

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FIDELITY CHINA SPECIAL SITUATIONS PLC 30 NOVEMBER 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.

Glossary / Additional Notes

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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.