This aggressive equity fund is designed for investors who want to tap into the faster-growing economies of the Asian region. Japan is excluded from the portfolio, but companies in countries as diverse as New Zealand and Thailand do qualify.

The performance of the fund is expected to be volatile over shorter periods, but the manager and his team are optimistic about the region’s long-term prospects.

Fidelity also believes that the far younger populations of the region – the average age in India is still expected to be below 30 in 2023 – will contribute to the faster rate of economic growth, as they will drive consumption. Plus, spending on infrastructure and rapid urbanisation could both be profitable investment themes.

Minimum investment: £1,000 (£500 for top-up investments)
Initial charge: 3.5%
Annual mngmt fee: 1.5%
Contact: For more details, call 0800 41 41 61 or visit www.fidelity.co.uk

John Monaghan says:
With this new fund, Fidelity is adding further strength to its well-established Asian fund stable. With a range of single-country and other funds, including Allan Liu’s South East Asia proposition, the aim of this fund is to expose investors to a more aggressive style of management in a relatively concentrated, high-conviction portfolio of between 55 and 85 stocks.

The new fund is managed by the vastly experienced, Hong Kong based David Urquhart, who will clearly leverage off the vast analyst resource Fidelity has to offer within the region. In keeping with the house style, the fund will be managed using a bottom-up stockpicking approach, while in terms of geographic exposure, there will be a wider investment remit than the South East Asia fund.

Presumably, the primary driver for the launch is to further tap into the Asian growth story and the belief that Asia is, indeed, decoupling from the US. Furthermore, there is a raft of evidence to suggest that, despite growth possibly slowing in comparison with recent years, Asian markets will generally grow at rates in excess of their Western counterparts and therefore generate superior returns. However, as with most high-conviction, low-stock portfolios, I would expect the fund to experience bouts of volatile performance over shorter time frames.

The fund is competitively priced given the remit and offers value to investors
who appreciate that, in attempting to deliver favourable returns, when compared to core offerings, the fund may endure periods of increased volatility.

3.5 Stars
John Monaghan is investment manager at Origen