Fidelity fund targets China hunger for consumer goods

15 September 2011 | By Joanne Ellul

Fidelity Worldwide Investment is launching onshore versions of its £155m China consumer and £158m Luxemburg-domiciled global real asset securities funds.

The onshore China consumer fund will be managed by Raymond Ma, who runs the offshore fund, and will typically invest in 80 to 120 stocks when it launches in February. It will have an initial charge of 3.5 per cent, with a 1.5 per cent annual charge. Minimum investment will be £1,500.

Ma says: “As more pro-consumption policies are introduced in the next few years, I believe consumption will rise significantly, creating more investment opportunities.”

FWI, which rebranded from Fidelity International last week, is also launching an onshore version of its Luxembourg domiciled global real asset securities fund on September 14. It will be managed by Amit Lodha, who runs the offshore fund, and will invest in between 50 to 70 stocks.

Initial charge is 3.5 per cent, and annual 1.5 per cent. Minimum investment of £1,500.

Bestinvest senior investment adviser Adrian Lowcock says: “A growing middle class in China and more demand for higher-end goods means the China fund should attract a lot of interest.”

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