Fidelity Worldwide Investment has launched an open-ended investment company, investing in 60 to 80 income-generating stocks in the Asia Pacific excluding Japan region.
Polly Kwan will manage the Fidelity Asian Dividend fund, whose mandate is unconstrained and seeks to provide a combination of income and long-term capital growth.
Fidelity says while Asia is perceived as a market offering the potential for high capital appreciation, over 50% of the total returns of Asian Pacific equities since 1999 have come from reinvested dividends.
It also says that Asian dividend-paying stocks have historically outperformed the broader Asian markets in both bull and bear markets.
Kwan adds that he seeks to deliver long-term total returns “with less volatility than other strategies exposed to the Asian growth story”.
The fund will have both distribution and accumulation shares. Distributions will be quarterly. The annual management charge is 1.5% for the A share class and 0.75% for the W share class.
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