Fidelity China Special Situations posts record net asset value return

(Alliance News) - Fidelity China Special Situations PLC on Tuesday reported its highest annual ...

Alliance News 8 June, 2021 | 12:08PM
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(Alliance News) - Fidelity China Special Situations PLC on Tuesday reported its highest annual net asset value total return, after a strong year of growth.

For the year to the end of March, the investment trust reported a net asset value total return of 82% and share price total return of 97%, outperforming the MSCI China Index return of 29%.

As at March 31, net asset value per share was 423.50 pence, up 79% from 236.27p the same date the year before.

Fidelity China's share price at the end of March was 419.00p, reflecting a 94% price hike from a year prior.

Shares in Fidelity China Special Situations were up 0.3% at 413.33p on Tuesday in London.

The investment trust declared a dividend of 4.68p per share, up 10% from 4.25p the prior year.

The record performance was attributed to "excellent opportunities" in the unlisted space in China, which has expanded markedly, Fidelity China said. At year end, the trust had 7.4% of net assets plus borrowings in nine unlisted holdings. Plans to increase the company's limit in unlisted holdings from 10% to 15% of net assets plus borrowing have been drawn up.

"It is now widely accepted that investors should have a direct exposure to China within a diversified portfolio," the company said in a statement.

"Our portfolio manager has constructed the portfolio to provide a broad-based exposure to 'new China', focusing on the long-term growth trajectory of the underlying companies and based on fundamental research that ensures a disciplined approach to valuation."

In separate news, Fidelity China announced the appointment of Alastair Bruce as non-executive director of the company. Bruce is a non-executive director and chair of ICG Enterprise Trust PLC and previously was managing partner of Pantheon Ventures between 2006 and 2013.

By Will Paige; willpaige@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Fidelity China Special Ord 359.00 GBX -1.64
ICG Enterprise Trust Ord 1,084.00 GBX -0.55

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Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

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