Fidelity South East Asia

Borrowedtune

I am very interested in hearing views on this fund please, as it's one I hold but it's underperformed over the past 2 years and part of me is getting a bit concerned.

The reason it is lagging seems to be the weighting towards China, Hong Kong and Taiwan. (when you add in the proportion accounted for by South Korea I start to wonder whether it now ought to be re-named Fidelity North East Asia)

I have been previously happy to hold as it provides diversification compared to my other Asia-Pacific funds (First State APL, Newton Asian Income, Aberdeen Asian Smaller).

The contrarian in me wonders whether this might actually be a good time to add to the holdings.

Add, hold or ditch ? All views are welcomed.

Totton

I've watched this fund for many years and like it a lot, however I prefer to invest in the First State offering so I would ditch it in favour of holding just the FS fund.

dunstonh

as it's one I hold but it's underperformed over the past 2 years and part of me is getting a bit concerned.

Underperformed relative to what?

Remember that not all funds in a sector are the same. The volatility levels will be different and typically the riskier ones do better in growth periods and the worse in negative periods. This can cause funds that are doing exactly what they are meant to do to jump around the past performance tables when you only look at that in isolation.

Not answering your question, I know but more a case of looking deeper to see if it fits with your objectives.

ColdIron

Just an unconsidered thought but if you bought it as a diversifier from your other asia pac, then maybe it's just doing its job and the positions might be reversed in a few years time

This opinion is worth precisely what you paid for it

walkritenow

I agree - this has been a disappointment. I must have got in at the top. It is costing me a £500 loss

planteria

i moved part of my SIPP into this fund a few weeks ago. Allan Liu is highly rated. i moved in from a China-focused fund. Long-term, it should do well.

slinga

I've held Fid SEA for more than 5 years.
Initially it was stellar but Aberdeen Asia Pacific is outdoing it and I have started switching to that.
Aberdeen Malaysia has been my best performing regional over the last year or so.

IronWolf

I've been interested in the South East asia region for the last few months, particularly China and Singapore where the stock markets appear to be valued at a substantial discount compared to western markets.

I think there are worries about a Chinese property bust which are keeping the markets down

sabretoothtigger

China has declining population, Ive avoided them for years. Sell shovels in a gold rush

be a good time to add to the holdings.

You can run a similar fund in parallel like I took a tracker in the same sector with the intention to hold it longer then the managed fund.

planteria

China will still become increasingly important though. having exposure to the South East Asia is wise, for the long-term. the manager is backed by Fidelity's substantial resources & i am happy to hold.

i have Matthews Pacific Tiger alongside.

planteria

"Geographic Focus
Asia excluding Japan:
"Pacific Tiger Countries"
China
Hong Kong
India
Indonesia
Malaysia
Pakistan
Philippines
Singapore
South Korea
Sri Lanka
Taiwan
Thailand
Vietnam

Investment Objective
Long-term capital appreciation

Strategy
The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 80% of its total net assets, in equities of companies located in Asia, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, Asia includes China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam."

http://global.matthewsasia.com/our-funds/f-12/matthews-pacific-tiger-fund/overview.fs