Fidelity International – Asian High Yield Fund Review
Fund objective
Fidelity International – Asian High Yield Fund aims to provide high current income and capital growth. At least 70% invested in high yielding sub-investment grade bonds of issuers or in high-yielding bonds of sub-investment grade issuers, all having their main business activities in Asia. The fund may invest its net assets directly in onshore China bonds listed or traded on any eligible market in China.
Fidelity International – Asian High Yield Fund has the freedom to invest outside the fund’s principal geographies, market sectors, industries or asset classes. Investments may be made in bonds issued in currencies other than the fund’s reference currency. Exposure to currencies may be hedged, for example with currency forward contracts. The reference currency is the currency used for reporting and may be different from the dealing currency.
Fidelity International – Asian High Yield Fund can invest in bonds issued by governments, companies and other bodies. The types of bonds in which the fund will mainly invest will be subject to high risk and will not be required to meet a minimum rating standard.
Fidelity International – Asian High Yield Fund may invest in assets directly or achieve exposure indirectly through other eligible means including derivatives. The Fund can use derivatives with the aim of risk or cost reduction or to generate additional capital or income, including for investment purposes, in line with the fund’s risk profile. The fund has discretion in its choices of investments within its objectives and policies. Income is accumulated in the share price. Shares can usually be bought and sold each business day of the fund. This fund may not be appropriate for investors who plan to sell their shares in the fund within 5 years. Investment in the fund should be regarded as a long-term investment.
Investment Strategy
Fidelity International – Asian High Yield Fund seeks a high level of current income and capital appreciation by investing primarily in high-yielding sub-investment grade securities of issuers, or in high-yielding securities of sub-investment grade issuers, all having their principal business activities in the Asian region. This Sub-Fund will suit those investors seeking high income and capital appreciation and who are prepared to accept the risks associated with this type of investment.
The type of debt securities in which Fidelity International – Asian High Yield Fund will primarily invest will be subject to high risk and will not be required to meet a minimum rating standard. Not all securities will be rated for creditworthiness by an internationally recognised rating agency. The Sub-Fund may invest its net assets
directly in onshore China fixed income securities listed or traded on any Eligible Market in China.
Who is Fidelity International – Asian High Yield Fund suitable for?
Fidelity International – Asian High Yield Fund is only suitable for investors who:
- seek a fund that aims to provide investors with relatively high income with the
possibility of capital gains - wish to participate in debt markets while being prepared to accept the risks described under the “Key Risks” section below
- seek long term investment.
Dividend or Income payout frequency: Monthly
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Fidelity International – Asian High Yield Fund?
The value of Fidelity International – Asian High Yield Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Fidelity International – Asian High Yield Fund are described below:
Market and Credit Risks
- You are exposed to Fluctuations in Value Risk
- You are exposed to Foreign Currency Risk
Liquidity Risks
- You are exposed to Liquidity Risk
Product-Specific Risks
- You are exposed to Bonds, Debt Instruments & Fixed Income & Credit Risks
- You are exposed to QFII Risks
- You are exposed to Emerging Markets Risks
- You are exposed to Derivatives Risk
- You are exposed to Distribution out of Capital Risk
- You are exposed to Credit Rating Risk
- You are exposed to RMB Currency Risk
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Fidelity International – Asian High Yield Fund
- Fidelity International – Asian High Yield Fund Fact Sheet (Open in New Window)
- Fidelity International – Asian High Yield Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser.
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