Size matters for Fidelity South-East Asia

Mr Liu has managed the South East Asia fund since July 2003 and is based in Hong Kong. He works with a team of on-the-ground analysts throughout the region to search out the best investment prospects.

The fund has an unusually large number of holdings - 151 - of which a third are held in China. The fund's second largest geographical exposure is to South Korea. In terms of sector breakdown, the fund's largest exposure is to financials, which include the Industrial and Commercial Bank of China, one of the fund's top ten largest holdings.

Over the long term - three to five years - the fund was performed well, posting top quartile performance.

The fund has a bias towards larger companies, although it is not constrained to the choice of company either by size or industry. Mr Liu favours high-quality stocks and actively monitors the liquidity of fund holdings. The fund tends to be fully invested with a relatively small cash position.

Commenting on the outlook for the region Mr Liu says: "Despite the recent falls in global equity markets, the region's economic fundamentals and growth prospects remain very healthy. It is certainly not immune to a slowdown in the West, but I believe that the region's economy is significantly less reliant on the West than in the past.

"I continue to believe that Asia's healthy financial system, robust domestic demand, low debt levels and high savings rates will continue to support a multi-year growth cycle. Short-term periods of high volatility present attractive opportunities to invest in good quality companies with strong long-term growth prospects."

Source: Investors Chronicle funds data, Morningstar

Performance figures as at 23 January 2012

Top 10 holdings (as at 31 December 2011)

Geographical Breakdown