Launched in April 2008, the $700m Sicav is managed from Fidelity’s Hong Kong office by Teera Chanpongsang. It has delivered an impressive 21% since launch (according to Financial Express Analytics).
The fund focuses on high conviction names across “true” emerging Asian markets, excluding more developed markets such as Taiwan and Korea. It typically invests in between 80 to 120 best ideas and follows a customised benchmark, with a weighting of 33% China, 33% India and Pakistan, 33% ASEAN ex Singapore. It may also invest in countries not included in the benchmark, such as Vietnam, Bangladesh and Sri Lanka.
While the Asian countries have given a mixed bag of performances in 2011, Chanpongsang believes that the recent correction has brought valuations down to more reasonable levels, while corporate earnings growth continues to be resilient. With consensus expectations turning more negative in the recent months, he believes that many of the stocks have the potential to positively surprise the market.
He said: “While inflation continues to be a concern in the near term, it is widely expected to peak in next few months. Besides, emerging Asia has continued to experience superior economic growth compared with the developed markets, due to the region’s structural growth trends. Favourable demographics, strong consumption, rising income levels, low debt levels and savings rate bode well for corporate earnings.”
Other Asian equity funds run by Fidelity include the South East Asia fund managed by Alan Liu, the China and India focus funds, Fidelity China Special Situations plc and the recently launched China Consumer fund.
