Fidelity Funds –
China High Yield Fund

“This strategy reflects our high conviction best ideas for investors who look for a high-income, potentially lower volatility strategy versus Chinese equity.”

- Bryan Collins, Head of Asian Fixed Income and Portfolio Manager.

Potential for higher income
by investing in China

At 6.6%, Chinese high yield bonds offer more attractive income than their counterparts in the US (6.2%) and Europe (4.3%) as of December 20171.

Dynamic allocation offers
diversification

The fund's flexible, non-benchmark approach reduces concentration risks to specific industry, compared to market indices1.

Potentially lower
volatility

China high yield bonds can potentially offer lower volatility than Chinese equity asset classes.

  • Find out more about the fund

    See its recent performance and what it invests in
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    Value over time

    See how the fund has performed over recent years. The chart below represents the value of HK$10,000 invested in this fund since 2015.

    Source: Fidelity International, NAV-NAV basis, in USD with dividends re-invested. Fund refers to Fidelity Funds - China High Yield Fund A-ACC-USD share class. Past performance is not indicative of future performance.

    Market outlook and how it impacts the fund

    • We remain positive on China’s high yield market. Risk sentiment has weakened compared to the start of the year, and the strong global growth backdrop remains intact.

    • The US gradually increased interest rates given stronger than expected wage growth, which suggests that we are further into an expansionary phase of the market cycle.

    • Concerns over a global trade war are likely to lead to continued volatility. Our base case remains that the US and China will eventually resolve their differences. Nonetheless, the recent volatility has made valuations more attractive with a medium-term horizon.

    See what the fund invests in

    As at 31 March 2018

    Source: Fidelity International.

Meet Bryan Collins, Head of Asian Fixed Income and Portfolio Manager