FTAdviser.com

Advertising

Fund manager Teera Chanpongsang will invest the majority of the portfolio in China, India and Association of Southeast Asian Nations (ASEAN) countries, excluding Singapore, at launch.

However, Chanpongsang will also have the capacity to invest up to 30 per cent of the portfolio in the frontier markets of Bangladesh, Pakistan, Sri Lanka and Vietnam, as well as other newer emerging economies, as opportunities arise.

Domiciled in Luxembourg, the fund will typically invest in 80 to 120 stocks from around 1,000 and will be benchmarked against the Custom MSCI Emerging Asia Composite Index.

The initial charge is 5.25 per cent and the annual management charge is 1.5 per cent. Minimum investment in the fund is $2,500.

Chanpongsang, a 14-year veteran in Fidelity’s Asian investment management team, says the Emerging Asia region offers the prospect of higher returns for investors than developed markets because of its faster economic growth, favourable demographics, rising investment in fixed assets and expanding domestic consumption.

"Vietnam is one of the fastest growing economies in Asia over the past 10 years. The country’s long-term rate of growth is likely to be sustainable, partly because of strong inflow of foreign direct investment after the joining of the World Trade Organisation (WTO), and also because of the young and expanding population, which will drive domestic consumption growth in the country," he said.