December, 2020
Selected financials, consumer and IT stocks proved rewarding
Second-hand vehicle lender Shriram TransportFinance Company advanced. Healthy loan collections, reduced their need for COVID-19 provisions, a reduction in the cost of funds and encouraging utilisation levels support the company’s earnings outlook. HDFC Bank rose as its encouraging earnings reflected robust growth in loans and deposits. Home appliances manufacturer Midea Group advanced in light of its robust profitability, mainly due to market share gains across its product categories and strength in its overseas business. Vision related equipment manufacturer Hangzhou Hikvision Digital Technology advanced due to improved fundamentals. Its enterprise business (business with privately owned businesses) remained the fastest-growing unit, while its small and medium enterprise business function turned positive in the third quarter. South Korean memory chip maker SK Hynix delivered healthy earnings due to a recovery in demand for mobile chips amid rush orders from Huawei ahead of US restrictions and smartphone launches. Strong sales of solid-state drives (SSDs) for gaming consoles also boosted its profitability. These gains were partially offset by the lack of exposure to Samsung Electronics. Its shares rose on the back of the strong healthy performance of its dynamic access random memory (DRAM), smartphone and consumer electronics segments.
Underweight in internet businesses supported relative returns
The bias against Alibaba Group Holding during the early part of the quarter, and the lack of exposure to Tencent Holdings added relative value. These stocks were caught in the sell-off of Chinese internet companies after Chinese regulators released a draft anti-trust guideline to curb anti-competitive behaviour and prevent monopolistic practices by online platforms.
Selected materials stocks ended lower Chinese gold miner Shandong Gold Mining retreated as vaccine-related news weighed on gold prices, which is a relatively safe-haven asset during volatile markets.
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/FundFactSheet_fidelity-asia-fund_Quarterly_Net_Dec20.pdfticker: FID0010AU
commentary_block: Array
factsheet_url:
https://www.fidelity.com.au/funds/fidelity-asia-fund/related-documents/fund-fact-sheet/
Under Fund Performance
release_schedule: Monthly
fund_features:
Fidelity Asia Funds aims to achieve returns in excess of the MSCI AC Asia (ex-Japan) Index NR over the suggested minimum investment time period of five to seven years.
- Access to a concentrated high conviction portfolio of typically between 20 to 35 companies across Asia.
- Uses a bottom-up stock selection process that favours companies with a compelling business model, above average earnings rate, increasing returns on equity over time and attractive valuations.
- A disciplined portfolio construction process with a ‘one stock in, one stock out’ approach designed to increase the prospect of each company making a meaningful contribution.
- Fund ratings : Lonsec (Rated), Morningstar (Bronze), Zenith (Highly Recommended)
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Asia Pacific w/o Japan
peer_benchmark: Foreign Equity - Asia ex Jap Index
broad_market_index: World Emerging Markets Index
structure: Managed Fund