Fidelity China Special Situations PLC (FCSS)

Profile

https://www.fidelity.co.uk/investor/research-funds/investment-trusts/china-special-situations.page

Fidelity China Special Situations PLC is a UK-domiciled closed-ended investment trust launched in 2010, designed to achieve long-term capital growth through an actively managed portfolio primarily invested in securities issued by companies in China, including both listed and unlisted firms, as well as those with significant interests in the region. Managed by Dale Nicholls since 2014, it employs a disciplined bottom-up approach, targeting undervalued, cash-generative businesses with strong management, particularly smaller and mid-cap companies that are often under-researched and mispriced. The portfolio spans sectors like consumer discretionary, communication services, industrials, and consumer staples, with notable exposure to technology, healthcare, e-commerce, internet, and innovation-driven industries such as AI and autonomous driving. Key features include the ability to use gearing up to 20% of net assets, derivatives for efficient management, and up to 15% in unlisted securities, providing access to private innovators. With total net assets around £1.58 billion as of late 2025, it holds 120-160 positions, leveraging Fidelity's extensive on-the-ground research team in an under-researched market. The trust pays an annual dividend, which has grown steadily, while prioritizing capital appreciation amid China's economic evolution. As the UK's largest China-focused investment trust and a FTSE 250 constituent, it offers diversified exposure to China's vast growth potential.