Fidelity Emerging Asia Fund W-Accumulation

Asia Equities

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
Name
Fidelity Emerging Asia Fund W-Accumulation
Manager
Fidelity (FIL Investment SVCS (UK) Ltd)
Type
Open Ended Investment Company
ISIN
GB00B84Q8M70
Sector
Asia Pacific Excluding Japan
Launched
28/01/2015
OCF
0.9 %
Risk Rating
3
3 Year Sharpe
0.84
3 Year Alpha
2.17
Yield
0.7 %
Benchmark
MSCI EM Asia NR EUR
The Fund’s investment objective is to achieve long term capital growth through investing principally in securities of companies having their head office or exercising a predominant part of their activity in less developed countries of Asia that are considered as emerging markets according to the MSCI Emerging Markets Asia Index.
Holding %
Tencent Holdings Ltd 8.10 %
Samsung Electronics Co Ltd 5.77 %
Taiwan Semiconductor Manufacturing Co Ltd 5.30 %
Alibaba Group Holding Ltd ADR 4.88 %
Industrial And Commercial Bank Of China Ltd Class H 3.40 %
Axis Bank Ltd 2.57 %
Power Grid Corp Of India Ltd 2.33 %
Housing Development Finance Corp Ltd 2.32 %
Reliance Industries Ltd 2.30 %
HDFC Bank Ltd 2.29 %
Region %
Asia - Emerging 67.25 %
Asia - Developed 29.65 %
Sector %
Technology 30.58 %
Financial Services 28.90 %
Consumer Cyclical 10.16 %
Energy 7.35 %
Consumer Defensive 6.48 %
Industrials 5.31 %
Name
Fidelity (FIL Investment SVCS (UK) Ltd)
Address
TN11 9DZ, Hildenborough, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Dhananjay Phadnis
Joined 11/01/2013

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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