Fidelity International has launched the Fidelity Funds Sustainable China A Shares Fund, investing in companies that are listed or traded on stock exchanges in China and tapping into various secular investment themes.
These include Chinese consumption, driven by macroeconomic and demographic trends, as well as structural shifts in consumer lifestyles and preferences and Chinese healthcare companies.
Fidelity said China’s onshore equity market offers investors “unique opportunities” that cannot be accessed elsewhere, including exposure to ‘New China’ and its digital economy.
A ‘cyclical segment’ will also fit within the portfolio, designed to benefit from China’s manufacturing industry and consolidation and upgrading of fragmented industrial sectors.
The new fund will join the Fidelity Sustainable Family of Funds, adopting a sustainable focused strategy whereby a minimum of 70% of its net assets will be invested in securities that meet its sustainability criteria.
It will be headed up by Victoria Mio, Ben Li, Yuanlin Lang and Theresa Zhou, all of whom have investment experience in Chinese and Asian equities.
John Clougherty, Head of UK Wholesale, Fidelity International said, “We believe the launch of the Fidelity Funds – Sustainable China A Shares Fund helps us meet our growing client demand for two investment solutions: access to the Chinese A-share market and sustainable investing. This unique offering will capitalise on our belief that, over the long run, China’s onshore equity market should benefit from strong capital inflows from both domestic and international investors and the potential long-term impact sustainability factors have on the value of companies.
“Our Sustainably Family of Funds has proved popular with investors and since launch in 2019, we have over 30 products available today. This new launch is part of our wider commitment to further grow the range, offering our clients increased thematic and regional funds across equity, fixed income and multi asset.”
