Fidelity launches emerging Asia fund

Fidelity has launched an onshore version of the emerging Asia fund in response to increasing adviser demand.

The fund will typically invest in 80-120 stocks from a universe of almost 1,000. The fund’s benchmark is the  SCI Emerging Asia Composite Index. 

The initial charge is 3.5 per cent and the annual management charge is 1.5 per cent. The minimum investment in the fund is £2,500.

Manager Teera Chanpongsang says on his positioning: “In China, I favour the consumer discretionary and internet businesses, which are benefiting from the structural growth in demand.

“I think the energy and materials companies in Thailand are well-placed to benefit from the demand growth in the region. In the Philippines, I am overweight in the consumer food manufacturers as well as the industrials sector. I also like banks in both these countries as they benefit from sustained economic growth.

“Indonesia is a great long term story because it is commodity rich and has strong demographics. Economic growth is second only to China and India in the region, while inflation is under control without too much tightening.  I am neutral Indonesia with overweight positions in banks, coal-miners and equipment manufacturers to coal miners.”