5-Star China Fund Bounces 55% in 1 Year

Still feeling nervous about investing in China? Fidelity's Dale Nicholls has nearly doubled investors' money in three years - and he promises the gains will keep coming

Emma Wall 13 March, 2017 | 12:18AM
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Investors are wary of China. It is hardly surprising give the impact the volatile market has on global assets. In the summer of 2015 a crash in the Chinese stock market dragged down its counterparts in the US, Europe and the UK. Fast forward to January 2016 and following the Federal Reserve raising interest rates in the US, the Shanghai Composite fell 1,000 points – taking the FTSE 100 and S&P 500 with it.

But despite this volatility, many investors have made great gains over the past three years investing in Chinese equities. Dale Nicholls, manager of the five-star Fidelity China Special Situations (FCSS) investment trust is one of them. Nicholls took over the management of FCSS from Anthony Bolton in April 2014, and has the share price has since gone from £100 to £194.

Before moving to Hong Kong to set up the China trust in 2010 Bolton had secured an unrivalled reputation as a UK-based fund manager. His Fidelity Special Situations fund had turned an investment of £1,000 into £148,200 during his 27-year tenure. But his skills as a UK and European stock picker did not prove entirely transferable, losing 14% from launch to the time he announced plans to leave the trust in June 2013. He regained these losses before handing over the reins to Nicholls, but the venture could hardly be called a success – having invested in two companies that turned out not to exist.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Fidelity China Special Ord330.01 GBP0.61Rating
Fidelity Pacific A-Dis-USD52.83 USD0.54Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar