Fidelity Asia Fund W Acc

Asia-Pacific Equities

Rated Fund 2018-20. Seeks growing companies trading below their intrinsic value

Teera Chanpongsang, manager of Fidelity Asia, is one of the longest-tenured managers in the Fidelity Asia ex Japan equities investment team, based in Hong Kong. He has been with the firm for almost 25 years. He started as an analyst before taking on a portfolio management role. Chanpongsang took over this fund at the start of 2014, after his predecessor, Allan Liu, retired. He has shown that he is comfortably up to the task, performing well relative to peers in both up and down markets.

He seeks out companies trading below their intrinsic values that he believes have improving fundamentals the market has not yet recognised in the firms’ underlying share prices. He has no stated style bias, although typically he leans towards ‘growth at a reasonable price’. He will also take advantage of value opportunities, particularly restructuring stories where he has significant conviction. The resulting portfolio has around 90 names.

The manager is broadly diversified at country and sector level but tends to favour companies operating in emerging Asian economies, such as those of China and India, at the expense of more mature markets such as Taiwan, Hong Kong and Singapore. This could lead to better returns over the longer term, but potentially with higher volatility.

Chanpongsang’s primary focus is on a company’s management, particularly with regard to its treatment of minority shareholders. Prior to joining Fidelity, he worked as an accountant in his native Thailand, so he is especially wary of companies that display earnings growth without corresponding cash-flow growth.

At the end of 2019 the fund’s largest exposures were to financials and information technology, which accounted collectively for more than half of its £3 billion of assets.

Narrative and ratings content all as of January 2020.

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Name
Fidelity Asia Fund W Acc
Manager
FIL Investment Services (UK) Ltd
Type
Open Ended Investment Company
ISIN
GB00B6Y7NF43
Sector
Asia Pacific Excluding Japan
Launched
15/10/2012
OCF
0.94 %
Risk Rating
4
3 Year Sharpe
0.39
3 Year Alpha
2.47
Yield
1.1 %
Benchmark
MSCI AC Asia Ex Japan NR USD
The Fund aims to increase the value of your investment over a period of 5 years or more. The Fund will invest at least 70% in equities (and their related securities) of companies throughout Asia (excluding Japan) (those domiciled, incorporated or having significant business in Asia (excluding Japan) and those which are listed in the region). This region includes countries considered to be emerging markets as determined by the Investment Manager at its sole discretion. The Investment Manager is not restricted in terms of size, industry, or geographical split.
Holding %
Tencent Holdings Ltd 8.04 %
Taiwan Semiconductor Manufacturing Co Ltd 7.74 %
Alibaba Group Holding Ltd ADR 7.68 %
AIA Group Ltd 5.80 %
Samsung Electronics Co Ltd 5.79 %
HDFC Bank Ltd 3.36 %
WuXi Biologics (Cayman) Inc Registered Shs Unitary 144A/Reg S 2.10 %
Industrial And Commercial Bank Of China Ltd Class H 1.89 %
Housing Development Finance Corp Ltd 1.88 %
E. Sun Financial Holding Co Ltd 1.85 %
Region %
Asia - Emerging 60.07 %
Asia - Developed 37.89 %
Sector %
Financial Services 28.99 %
Technology 23.38 %
Consumer Cyclical 15.29 %
Communication Services 10.90 %
Consumer Defensive 7.03 %
Name
FIL Investment Services (UK) Ltd
Address
TN11 9DZ, Hildenborough, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Teera Chanpongsang
Joined 01/01/2014

Teera commands a strong background in research and fund management in the telecommunications sector. He has been the research team leader of the Asia Pacific ex-Japan telecommunications sector, and co-manager of the fund, since early 2000. He joined Fidelity in 1994 as a research analyst covering a wide spectrum of sectors including banks and telecommunications in South East Asia, and as the country specialist for Thailand. Since July 1998, Teera has managed Fidelity Funds Thailand Fund.

Data provided by Morningstar.

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