A China fund from Fidelity is beating the crowd. How it plans to keep doing it

by | Sep 3, 2023 | Financial

Fidelity’s China Focus Fund is setting up for another year of outperformance, after ranking first last year among China equity funds tracked by Morningstar. With minimal losses of 0.66% for the year as of Aug. 31, the China Focus Fund has held up far better than the China equity category’s decline of 9.45% during that time, according to Morningstar. Its benchmark China index has lost 3.82% year-to-date. The China Focus Fund is a “value contrarian strategy,” said Catherine Yeung, a Hong Kong-based investment director focused on equities at Fidelity International. In contrast to value investing in developed markets that might focus on a sector such as utilities, she said the strategy in China looks for companies that are good businesses – at a good price. “We go through all sorts of information, speaking to competitors, suppliers, balance sheets, accounting, have there been incidents at factories?” she told CNBC. The China Focus Fund held 80 stocks as of July 31, mostly in Greater China but also some overseas companies that do most of their business in the country, according to a fact sheet. The fund had $3.72 billion in assets …

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