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 9.5%, Chinese high yield bonds offered more attractive income than their counterparts in the US (6.3%) and Europe (4.9%) as of June 20181.

Cushioned against
rising rates

The short duration strategy offers the potential for a more stable performance as the Federal Reserve raises rates in the US.

Potentially lower
volatility

The China high yield bonds could potentially be a lower volatility alternative to Chinese equities to capture the growth momentum of China.

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.

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

Discover the potential of Asian fixed income
Discover the potential of Asian fixed income

With analysts on the ground, connected research insights across fixed income and equity and a focus on superior risk adjusted returns across our range of products, Fidelity can help you discover the potential of Asian fixed income.

Find out how to invest in Asian fixed income
Find out how to invest in Asian fixed income

We provide world class investment expertise to help you achieve your financial goals. Fidelity in Singapore offers its funds through banks, brokerage houses, Independent Financial Advisors (IFA) and retail e-platforms.


1Source: Fidelity International. Figures relate to market indices and may not be reflective of actual performance of the fund. ICE BofAML Indices: HQ0C for EHY; HUC0 for USHY; ACYC for CHY, as of 28 June 2018.

This publication is for information and general circulation only. It does not have regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive it. You should seek advice from a financial adviser before investing in the fund(s). If you choose not to seek advice from a financial adviser, you should consider whether the fund(s) in question is suitable for you. Views expressed are subject to change, and this publication cannot be construed as an advice or recommendation. This advertisement has not been reviewed by the Monetary Authority of Singapore.

FIL Investment Management (Singapore) Limited [“FIMSL”] (Co. Reg. No.: 199006300E) is the representative for the fund(s) offered in Singapore. Potential investors should read the prospectus, available from FIMSL or its distributors, before investing in the fund(s). The value of the shares of the fund(s) and the income accruing to them, if any, may fall or rise. The fund(s) may use financial derivatives, which entail specific risks as described in the prospectus. Past performance of the manager and the fund(s), and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the fund(s), are not indicative of the future performance.