FIDELITY CHINA SPECIAL SITUATIONS PLC (FCSS) Shares

ABOUT FIDELITY CHINA SPECIAL SITUATIONS PLC

Fidelity China Special Situations plc is a UK-based investment trust dedicated to long-term investments in Asia.

The company has a brief history dating back to 2010, and today is managed by Dale Nicholls of Fidelity International. The company makes full use of Fidelity’s extensive investment research presence and investment licenses in China – which are among the largest of any international investors.

The portfolio manager focuses on undervalued companies which have good long-term growth prospects which have been underestimated by the wider market.

The company has a bias to small and medium-sized companies, where lower levels of research by competitors leads to greater opportunities for mis-pricing, but is not constrained and may invest in large or mega-cap companies such as state-owned-enterprises where mis-pricing appears.

OVERVIEW OF FIDELITY CHINA SPECIAL SITUATIONS PLC

• The investment objective of Fidelity China Special Situations plc is to achieve long term capital growth from an actively managed portfolio made up primarily of securities issued by companies listed in China and Chinese companies listed elsewhere.

• The Company may also invest in listed companies with significant interests in China.

• The portfolio manager will focus on identifying companies which are most likely to benefit from China’s growth and changing economy.

• The company is not restricted in terms of size or industry of companies included in the portfolio and may invest in unlisted securities.

• The company may also invest into other transferable securities, collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for gearing purposes and efficient portfolio management.

• The Company has adopted a variable management fee which is calculated by referencing performance relative to the MSCI China (N) Index.

VISION & VALUES OF FIDELITY CHINA SPECIAL SITUATIONS PLC

• Fidelity China Special Situations plc seeks to invest in companies which uphold its values of corporate social responsibility, particularly as they pertain to community and environmental impacts.

• The Trust understands that investing in assets which have a positive impact on the communities in which they operate, while conducting operations in such a way that lowers their GHG emissions and sustains the environment, contributes to the long-term value of these assets.

MARKET PERFORMANCE OF FIDELITY CHINA SPECIAL SITUATIONS PLC

• Fidelity China Special Situations plc currently trades on the Financial Times Stock Exchange (FTSE), where investors can buy shares under the stock symbol FCSS.

• Data from the company’s 2019 financial analysis shows that over the reporting year, the company’s NAV total return was -5.3%, underperforming the MSCI China Index (the Company’s Benchmark Index) return of +0.9%. The company’s share price total return was -0.3%.

• The year was adversely affected by the general underperformance of small and mid-cap stocks but, as Dale Nicholls comments in his report, aggregate earnings for the companies in the portfolio are expected to grow over 20% in the current financial year.

• Despite the one year returns, the NAV and share price performance (on a total return basis) over Dale Nicholls’ 5 year tenure as Portfolio Manager and since launch to 31 March 2019, remain well ahead of the Index.

• The Board recommended final dividends of 3.85 pence per ordinary share for the year ended 31 March 2019

• Following a strong performance the previous year, the company’s share price fell during the year and then recovered to finish close to where it had started.

• All of this demonstrates that, with China, patience is rewarded and an investment in the company should be viewed over the medium to long-term.

• China’s growth rate of 6.6% for 2018 continues to run way in excess of developed market economies. Increasingly investors are seeing the benefit of having a portion of their overall portfolio dedicated to China and the company was designed, from the start, to fill that need.

• Despite recent under performance, this company remains positioned as a strong long-term buy for investors who choose to purchase shares.

Buy FIDELITY CHINA SPECIAL SITUATIONS PLC stocks / shares – A Step by Step Guide how to Buy / Purchase FIDELITY CHINA SPECIAL SITUATIONS PLC Stocks or Shares online.

Before buying any stock or share one has to consider a few factors.

STEP 1: PROPER RESEARCH IS ESSENTIAL

Upon deciding you want to buy FIDELITY CHINA SPECIAL SITUATIONS PLC Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.

Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.

STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN FIDELITY CHINA SPECIAL SITUATIONS PLC STOCKS / SHARES

It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.

STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE

Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.

STEP 4: OPEN A BROKERAGE ACCOUNT

A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.

STEP 5: COMMIT AND PURCHASE FIDELITY CHINA SPECIAL SITUATIONS PLC STOCKS / SHARES

Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out.  Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of FIDELITY CHINA SPECIAL SITUATIONS PLC stocks / shares.

5 Questions to ask yourself before purchasing any stocks or shares.

1. Is it the best time to buy this stock / share?
2. Should I buy FIDELITY CHINA SPECIAL SITUATIONS PLC stocks / shares in the current economic climate?
3. Can I afford to buy this stock / share?
4. What is the forecast of the stock / share growth?
5. What is the current price per earning ration on the stock / share?