New Aggressive Asian Fund From Fidelity

Nick Parmee

11 February 2008

Fidelity International is launching a new, aggressive equity fund for investors who want to tap into the economies of the Asian region. The fund will be run by David Urquhart, with between 55 and 85 holdings. Mr Urquhart, who is based in Hong Kong, will pick stocks from 13 Asia Pacific ex-Japan stock markets. The fund is aimed at “adventurous” investors: performance is expected to be volatile over shorter periods, but Mr Urquhart is optimistic about the region’s long-term prospects. He said: “Besides a strong economic backdrop, there are many world class companies emerging in the region. Economic growth in the Asia ex-Japan region is forecast to be far faster than in the markets of Europe and the United States. GDP in Australia is expected to grow by 3.5 per cent this year and Korea by 5.2 per cent, according to the OECD. By contrast, GDP growth in the UK and US is forecast to be below trend at 2 per cent.” Mr Urquhart also believes that the far younger populations of the region will contribute to the faster rate of economic growth as they will drive consumption. In addition, he thinks spending on new infrastructure and rapid urbanisation could both be profitable investment themes.