Fidelity adds sterling class to Emerging Asia fund

Fidelity has added a sterling share class to its Luxembourg-domiciled Emerging Asia fund.

The $222m vehicle, run by Teera Chanpongsang, was launched in April 2008 invests primarily in China, India and other ASEAN countries, excluding Singapore. It also has the ability to have 30% in the frontier markets of Bangladesh, Pakistan, Sri Lanka, Vietnam and other developing emerging economies.

Previously been available to UK investors via dollar and euro share classes, the new sterling class coincides with the fund's inclusion into the IMA Asia Pacific ex Japan sector next month.

"Economists now expect inflation in many Asian countries to peak in the second half of 2010, which means there should be less risk of monetary tightening," Chanpongsang says.

"Moreover, the weak economic outlook in Europe makes emerging Asia even more attractive in relative terms.

"My view is that those who stay invested and ride over short term volatility will be rewarded handsomely over the long term."

The initial charge is 3.5% and 1.5% AMC. Initial commission is 3% and 0.5% trail.