Investment giant Fidelity Worldwide has launched a fund targeting high-conviction stocks to capture 25 to 35 of the best investment ideas across the Asia Pacific region, aiming to outperform the MSCI AC Asia Pacific ex Japan index.
The Fidelity Asia Pacific Opportunities fund, launched on 24 September, is managed by Anthony Srom, who has been running Asia funds at the group since 2008.
The concentrated nature of the fund aims to provide potential for stocks to contribute to the portfolio performance. Active money is to be maintained at roughly 90 per cent. The fund has a fundamental bottom-up approach which will have the flexibility to invest across the entire Asia Pacific region, from emerging to developed markets, including Australia.
The fund aims to take advantage of the wealthier consumer base by the opportunity for strong long-term growth. The stock-by-stock approach to portfolio construction is to be based on in-depth research using the firm’s 200 professionals. The group is hoping the fund will have the same success as its other Asian offerings, such as the South East Asia fund.
The Oeic fund’s minimum investment is £1,000, with an annual management fee of 0.75 per cent and an ongoing charge estimated at 1.08 per cent. The fund is both Isa- and Sipp-eligible and its base currency is sterling.
Comment:
Fidelity is no stranger to Asia, with a large array of funds within the space. The area has seen solid infrastructure developments with rising levels of regional trade. While the fund can access emerging markets, it also has more developed countries such as Singapore and Australia to hand.
Being able to invest in both emerging and developed markets allows the fund to perform well during different market cycles, particularly as the group has more than 100 locally-based equity professionals able to discover the best opportunities.
Asia has been growing fast over the past decade and is no longer just about China and India, but there are many undiscovered gems in the region, so this fund could be a good way to gain ground and access the untapped markets.
