Company Announcements

London, UK, 21 July 2020

Edison reviews Fidelity China Special Situations (FCSS)

Fidelity China Special Situations (FCSS) aims to achieve long-term capital growth from an actively managed portfolio of stocks mainly listed in China and Chinese companies listed abroad. It is the largest UK investment trust focused on China. Manager Dale Nicholls believes that the COVID-19 crisis has accelerated several of the trends driving Chinese growth and he sees many investment opportunities, especially among under-researched, mis-priced small-cap stocks. Nicholls's unconstrained approach allows him to invest in high-conviction ideas, principally in higher-growth consumer-led sectors, which will benefit from China's strong growth prospects. The trust has delivered significant outperformance against its MSCI China benchmark since inception.

In early June 2020, the board expressed its aspiration to continue to increase its annual dividend and the ability to realise this ambition is enhanced by FCSS's revenue reserves. The board has a single-digit discount policy and has been proactive in its efforts to stabilise the discount during recent market volatility. There is scope for the discount to narrow should investor sentiment towards China, especially Chinese small-cap companies, improve.  

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About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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For more information please contact Edison:

Joanne Collins, +44 (0)777 552 4686

Mel Jenner, +44 203 077 5720

investmenttrusts@edisongroup.com

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