Fidelity is launching a new aggressive Asia Pacific equity fund, targeting returns in 13 outposts in the rapidly expanding region.
Open to investors next week, the Fidelity Investment Funds Asian Aggressive fund will be run by Hong Kong-based manager David Urquhart and hold between 55 and 85 stocks.
Japan is excluded from the portfolio, but opportunities will be sought in countries such as New Zealand and Thailand.
Fidelity says investors can expect performance to be volatile over shorter periods, but Urquhart is optimistic on the region’s long term prospects.
“Besides a strong economic backdrop, there are many world class companies emerging in the region,” Urquhart says.
“Economic growth in the Asia ex-Japan region is forecast to be far faster than in the markets of Europe and the United States.
“GDP in Australia is expected to grow by 3.5% this year and Korea by 5.2%, according to the OECD. By contrast, GDP growth in the UK and US is forecast to be below trend at 2%.”
Urquhart is also confident on the opportunities the region’s “far younger populations” will bring, as well as infrastructure and rapid urbanisation themes.
The fund has a 3.5% initial charge and 1.5% annual management charge. Minimum investment is £1,000 and £500 for top-ups.
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