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Fidelity International to debut mutual fund in China in April

It is the third foreign fund management company to do so.

FIL Fund Management, the wholly foreign-owned enterprise of Fidelity International, has announced that its first mutual will be available to domestic retail investors from 3 April.

The product was approved late last month by the China Securities Regulatory Commission.

“Launching our first fund to retail investors in mainland China is an important milestone for Fidelity International,” said Rajeev Mittal, managing director for Asia Pacific ex-Japan at Fidelity International.

“Over the coming years, we plan to build out a diversified financial services company in China with a strong footprint in pensions and asset management and a mission to help investors achieve their long-term financial goals.”

The product is an equity fund managed by Lynda Zhou, which invests in A-shares and H-shares companies and focuses on the opportunities arising from China’s economic recovery including consumption, real estate related sectors and industrials that are moving up the value chain.

It will also prioritise quality companies that sustainably deliver high returns on equity, have strong balance sheets and are led by reliable management teams, said the firm.

Fidelity received the nod to open its mutual fund business in China in December last year.

The fund will be distributed through a range of partners including Bank of China, Citic Securities, Ant Fortune and Eastmoney Tiantian.

Part of the Mark Allen Group.