• Value-oriented, bias towards medium-to-large capitalisation companies
• Manager is benchmark aware, fund managed fairly closely against the benchmark
• Strong track record against peers

The Fidelity Funds - Thailand Fund was the best performing Thailand equity fund on the platform over cumulative two-year, three-year, four-year and five-year periods ended March 2012. The fund delivered a 15.1% annualised return over five years, which compares favourably to the 11.9% average return for funds in the category over the same period. In terms of risk, the fund scored relatively well, and was ranked second (out of four funds in the category) in terms of both downside deviation and maximum drawdown over the three-year period ended March 2012.

The manager employs a value-oriented approach to stock selection, and generally has a bias towards medium-to-large capitalisation stocks. The manager has also guided that sector bets are largely a result from the bottom-up stock selection process, rather than macroeconomic views. The portfolio held 62 stocks as of 30 April 2012, representing a fairly diversified portfolio, while the manager is also expected to be fairly benchmark aware, with internal guidelines on active stock and sector positions vis-à-vis the benchmark.

The fund invests principally in equity securities quoted on the stock exchange in Thailand, a relatively narrow investment focus compared to more diversified Asia ex-Japan funds. While political risk is a key issue when investing in many emerging markets, Thailand’s long-standing record of continued political instability is worth highlighting, with political tensions in the country often leading to increased stock market volatility. While the fund is denominated in USD, investors should note that their currency exposure will be to the Thai baht (THB) when investing in this fund.

The Fidelity Funds – Thailand Fund is currently managed by Eric Choe, who recently took over the management of the fund from Anthony Srom on 1 April 2012. Fidelity Worldwide Investment has a team of 41 locally based Asia Pacific (ex Japan) equity research professionals. This team is also able to leverage on Fidelity’s global research network including 27 Japan equity research professionals and 56 Europe equity research professionals. In addition, Fidelity may share research with Fidelity Management and Research LLC research analysts.