Page 8 - DIY Investor Magazine - Issue 27

We tend to find companies that meet our criteria more often among smaller companies. As long as these companies can execute well and deliver on their promises, growing earnings over time, this should ultimately be reflected in stronger share prices over time.
As well as those companies geared to China’s long-term structural growth story we mention above, we are also finding opportunities is in the materials space in China.
This incorporates several sectors that are still fragmented, but where signs of consolidation are underway. We are focused on the leaders emerging from this process.
Examples would be in areas such as paint and floor tiles.
More generally, given the strong run in markets - notably in technology, healthcare and staples sectors - value is becoming harder to find, but there are still overlooked opportunities, especially among small-cap companies.
For example, many healthy, fast-growing Hong Kong- listed small-caps still at single-digit PE ratios. We see real opportunities ahead as China emerges from this crisis.
To buy this trust login to your EQi account
Select Fidelity China Special Situations PLC - GB00B62Z3C74
Important information
The value of investments and the income from them can go down as well as up, so you may get back less than you invest. Past performance is not a reliable indicator of future returns. Investors should note that the views expressed may no longer be current and may have already been acted upon. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation
for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.
Overseas investments will be affected by movements in currency exchange rates. The Fidelity China Special Situations Investment Trust invests in emerging markets which can be more volatile than other more developed markets. This trust invests more heavily than others in smaller companies, which can carry a higher risk because their share prices may be more volatile than those of larger companies and the securities are often less liquid. This trust uses financial derivative instruments for investment purposes, which may expose it to a higher degree of risk and can cause investments to experience larger than average price fluctuations.
The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility.
The latest annual reports, key information documents (KID) and factsheets can be obtained from our website at www.fidelity. co.uk/its or by calling 0800 41 41 10. The full prospectus may also be obtained from Fidelity. Fidelity Investment Trusts are managed by FIL Investments International. Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. UKM0221/33533/SSO/0521
DIY Investor Magazine | Mar 2021 8