Fidelity Pacific Basin Fund overview
The Fidelity Pacific Basin Fund invests 80% of its assets in stocks and bonds issued by companies located in the Pacific Basin. The fund primarily invests in common stocks. The fund uses “fundamental analysis of factors such as each issuer’s financial condition and industry position, as well as market and economic conditions, to select investments.”
The fund’s assets were spread across 112 issues as of March 2016, and it was managing assets worth $644.3 million as of the end of May. As of April, its equity holdings included Japan Tobacco (JAPAY), SoftBank Group (SFTBY), Lenovo Group (LNVGY), Cognizant Technology Solutions (CTSH), and ResMed (RMD).
Portfolio changes in the Fidelity Pacific Basin Fund
A fifth of the fund’s assets is invested in the financial sector, making it the biggest sector for the fund. Consumer discretionary and health care occupy second and third ranks, respectively. These top three invested sectors form 53% of the portfolio.
Compared to the MSCI AC Pacific Index, the fund is overweight in the consumer discretionary, health care, and consumer staples sectors while being underweight in the financials, information technology, industrials, and materials sectors. Japan has the highest weight in the fund with stocks from the nation forming 35.8% of the assets. Australia and Hong Kong are the only other countries commanding over a tenth of the fund’s portfolio each. Taiwan and China, in that order, round off the top five countries with the highest weights.
Even though financials continue to enjoy the top spot as far as sectoral composition is concerned, allocation to stocks from the sector has fallen from a year ago. Exposure to healthcare stocks is up from a year ago, but down from the intra-period of 12 months until May 2016. Most sectors have seen their weights in the fund fluctuate quite frequently in the past year.
With this portfolio positioning, how has the Fidelity Pacific Basin Fund (FPBFX) fared in 2016 YTD? Let’s look at that in the next article.