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China - Equity fund seekers should consider taking a look at Fidelity China Region Fund (FHKCX). FHKCX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
FHKCX is one of many China - Equity mutual funds to choose from. These funds focus their investments almost exclusively on stocks in China, Taiwan, and Hong Kong. We tend to associate the Chinese economy with vast export-focused manufacturing, and although this is still important, China is increasingly catering to its booming middle class. If this approach sounds appealing to you, FHKCX could be the way to go.
History of Fund/Manager
Fidelity is responsible for FHKCX, and the company is based out of Boston, MA. Fidelity China Region Fund debuted in November of 1995. Since then, FHKCX has accumulated assets of about $853.54 million, according to the most recently available information. Ivan Xie is the fund's current manager and has held that role since April of 2018.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 4.76%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -7.48%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FHKCX over the past three years is 26.84% compared to the category average of 27.54%. The standard deviation of the fund over the past 5 years is 24.32% compared to the category average of 25.56%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.55, so investors should note that it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. Over the past 5 years, the fund has a negative alpha of -2.16. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.