The Fidelity Pacific Basin Fund
The Fidelity Pacific Basin Fund (FPBFX) aims to invest 80% of its net assets in the common stocks of “Pacific Basin issuers and other investments that are tied economically to the Pacific Basin.” The fund is managed by John Dance, who has been at the helm since October 2013.
The fund literature states that FPBFX uses both top-down and bottom-up research approach while constructing and rebalancing the fund’s portfolio. Fundamental analysis is used while applying the bottom-up approach in order to gauge an issuer’s financial state and position in the industry.
FPBFX’s house data shows that financials are the single-largest sectoral holding of the fund, making up 23% of the portfolio as of December 2015. The healthcare and consumer discretionary sectors follow, representing a combined 32.5% of the fund’s assets. Consumer staples and industrials round-off the top five invested sectors. Compared to its benchmark, the MSCI AC Pacific Index, the fund is substantially overweight the consumer staples and health care sectors, while it is a little overweight the consumer discretionary sector. On the other hand, the fund is underweight the financials, industrials, information technology, telecom services, materials, and utilities sectors.
About 40.5% of the fund’s assets are invested in companies located in Japan. Australian companies form 13.4% of the assets, and Hong Kong, China, and India round out the top five invested geographies. Compared to the aforementioned index, the fund is underweight in Japanese, Hong Kong, Chinese, and Korean equities while being overweight in Australian, Indonesian, and New Zealand equities.
Japan Tobacco (JAPAY), Nidec (NJ), Lenovo Group (LNVGY), Cognizant Technology Solutions (CTSH), and China Biologic Products (CBPO) were among the fund’s 118 holdings as of the end of December. As of January 2016, the fund was managing assets worth $618.7 million.
Fees and minimums
FPBFX has been around since October 1986 and has an expense ratio of 1.17%. The fund requires a minimum of $2,500 to invest and charges a short-term trading fee of 1.5% of the amount redeemed if you exit within 90 days of investing. But there’s no minimum additional investment.
Now let’s look at some of the key metrics of FPBFX’s performance over the past year.