Benefits of investing in the Fidelity China Fund

The Fidelity China Fund is an actively managed portfolio of Chinese Securities.

Some of the features of the Fund include:

• Access to an actively managed portfolio of Chinese Securities.

• An investment approach that places first-hand, detailed research at the core of decision making, ensuring that every security is investigated before being included in the Fund.

• The ability for the portfolio manager to call on the research of a dedicated team of analysts based throughout China, Hong Kong and Asia who have access to a global network of research analysts.

• Significant benefits Some of the benefits that may arise from an investment in  the Fund include:

• Potential to earn higher returns than the Fund's benchmark, the MSCI China Index NR, over the suggested timeframe.

• Access to the investment knowledge and expertise of Fidelity's global network of investment professionals who can assess Chinese companies in a global context.

• Regular investment statements and an annual tax statement to keep you up to date on your investment.

Why invest?

• A strong ten-year track record with more than 20 years' experience investing in China and rare access to local companies.

• Access to China's growth story by investing in some of the best undiscovered opportunities.

• A proven stock selection process informed by 25 on-the-ground analysts.

What will we invest your money in?

The Fund may invest in a variety of shares, derivatives and cash. The Fund invests primarily in securities of companies located in China as well as those companies located elsewhere that derive a significant proportion of their earnings from China (Chinese Securities). The Fund will comprise between 90% to 100% of Chinese Securities with the remaining portfolio held in cash.

Decisions to invest cash will be dependent upon the availability of other favourable investment opportunities. The Fund will not generally invest in the securities of companies listed in Australia unless they derive a significant proportion of their earnings from China.

First-hand local knowledge gives us the edge

It starts with ideas Every piece of information counts as we look for insights  into companies we believe show unrecognised potential.  We have rare access to local companies and with access  to the A-share market we believe there are vast opportunities for fundamental investors like Fidelity.

Taking a 360º view Fidelity has one of the largest buy-side China research teams in the industry. We look at every aspect of a Chinese company's performance - from its efficiency on the factory floor to the soundness of its offshore markets. The team searches for quality business models and management teams that are out of favour due to short-term macro reasons.

Stock selection

Final stock selection decisions are made by the Portfolio Manager, Jing Ning. Her bottom-up approach focuses on determining the intrinsic value of a company rather than themes. Jing puts companies on her radar for two quarters to assess their viability before making a final decision and selecting 70 to 100 of the best ideas.

Monitoring Market conditions in China can change rapidly. Every 120 days, we review companies that have stock in the Fund.  If things change, we can react quickly.

The approach

The Fund is managed by Jing Ning. Jing has 16 years' experience and joined  Fidelity International (Hong Kong) Ltd in 2013. Jing's starting point is to identify intrinsic value at market extremes, and her valuation approach is central to the process. She searches for quality business models and management teams that are out of favour due to short-term macro reasons. This, combined with her long-term investment horizon, gives her the ability to identify stocks that are undervalued in China's more volatile market, but which should be beneficiaries of the country's growth dynamics. Jing is backed by a team of 25 analysts who cover Chinese stocks, plus the support of the broader Fidelity global research team.

The Fidelity Difference

Established in 1969, Fidelity International offers world- class investment solutions and retirement expertise. As  a privately owned, independent company, investment  is our only business and we're driven by the needs of  our clients, not by shareholders. Our vision is to deliver innovative client solutions for a better future. We're an active manager focused on global research,  and have one of the largest buy side research teams in  the world. It's our obsession with research, with insights globally and locally, which enable us to evaluate complex businesses and make better investment decisions for our clients.

How we invest your money

The Fund generally invests in a diversified selection of Chinese Securities.

Fidelity believes that markets are semi-efficient and share prices don't always reflect inherent value. Through in-house, bottom-up company research, Fidelity aims to uncover the opportunities that it believes offer the greatest scope for outperformance.

Based on this research approach, Fidelity seeks out stocks that it believes are undervalued and likely to generate growth. The companies selected for the portfolio must demonstrate good management, strong competitive advantages and enjoy favourable industry dynamics.

The Fund's exposure to international securities will not be hedged back to Australian dollars. This means that the value of an investment in the Fund will change not only on the basis of a change in asset values, but also because of movements in exchange rates.

Asset classes and ranges

• Chinese Securities: 90% to 100%

• Cash: 0% to 10%

The approach

The Fund is managed by Jing Ning. Jing has 16 years' experience and joined  Fidelity International (Hong Kong) Ltd in 2013. Jing's starting point is to identify intrinsic value at market extremes, and her valuation approach is central to the process. She searches for quality business models and management teams that are out of favour due to short-term macro reasons. This, combined with her long-term investment horizon, gives her the ability to identify stocks that are undervalued in China's more volatile market, but which should be beneficiaries of the country's growth dynamics. Jing is backed by a team of 25 analysts who cover Chinese stocks, plus the support of the broader Fidelity global research team.

We may make use of derivatives, such as futures contracts and swaps. A derivative is a security whose price or value is dependent upon or derived from an underlying instrument (such as shares, indices, interest rates, fixed income securities, commodities, currencies, etc). A derivative contract is a contract between two or more parties and its value is determined by fluctuations in the underlying asset. Generally, derivatives will be used for cash flow management purposes within the Fund. Any derivative exposure must be fully covered by cash or assets sufficient to meet any obligation that could arise. If derivatives are used, they will comprise a small portion of the Fund's assets.