Fidelity Emerging Asia Fund W-Accumulation
Rated Fund 2017-19. Focuses on Asia’s ‘true’ emerging economies
The Asia Pacific region includes both emerging and developed economies. Fidelity Emerging Asia distinguishes itself by having higher weightings than other funds to what it describes as Asia’s “truly emerging economies” – the ASEAN (Association of South East Asian Nations), and China and India in particular. These markets are seen as key beneficiaries of powerful growth drivers such as rapid urbanisation and rising domestic demand from an increasingly affluent middle class in the region as a whole.
Since 2013 the fund has been managed by Dhananjay Phadnis, based in Hong Kong. He employs a company-focused approach to investment management. He seeks to identify high-quality companies with sustainable growth prospects trading at attractive valuations. When seeking to assess the sustainability of firms’ competitive advantages, his emphasis is on developing a thorough understanding of the supply/ demand balance in industries as well as analysing the barriers to entry in a particular industry segment.
He looks for three key characteristics when assessing potential investments. First, he likes to find ‘moat’ stocks: industry leaders able to generate strong returns, sustain them and reinvest at increasing rates of return. Secondly, he seeks quality management teams: companies where the management has a strong track record and where interests are fully aligned with those of minority shareholders. Thirdly, he looks to buy stocks with unrecognised long-term growth potential at favourable valuations, or stocks whose valuations and fundamental attractions have become disconnected because of short-term problems.
Phadnis says investors are concerned about three key challenges in Asia: dollar strength, trade tensions between the US and China, and the slowdown in the Chinese economy. He believes China will implement measures to support the economy in the long run, though.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|Tencent Holdings Ltd||7.48 %|
|Alibaba Group Holding Ltd ADR||5.34 %|
|Taiwan Semiconductor Manufacturing Co Ltd||4.55 %|
|Samsung Electronics Co Ltd||4.11 %|
|Industrial And Commercial Bank Of China Ltd H||3.38 %|
|HDFC Bank Ltd||3.09 %|
|Housing Development Finance Corp Ltd||2.60 %|
|AIA Group Ltd||2.50 %|
|China Pacific Insurance (Group) Co Ltd H||2.14 %|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||1.81 %|
|Asia - Emerging||68.65 %|
|Asia - Developed||27.67 %|
|Financial Services||29.86 %|
|Consumer Cyclical||11.42 %|
|Consumer Defensive||7.32 %|
Dhananjay joined Fidelity in 2004 as an investment analyst in India. He moved to Hong Kong in 2006. As an analyst, Dhananjay covered the Asian telecommunications, consumer discretionary, industrials and materials sectors. He was promoted to Director of Research (DoR) in 2009. As DoR, he was responsible for mentoring and guiding Fidelity’s team of research analysts based in various offices in the Asia ex Japan region.
Data provided by Morningstar.
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