Contact: Camille Lepre
(617) 563-9171
For Immediate Release
FIRST CLOSED END FUND OFFERED BY FIDELITY
ANNOUNCES COUNTRY ALLOCATION AND TOP 10 EQUITY HOLDINGS
FIDELITY ADVISOR EMERGING ASIA FUND
BOSTON, October 31, 1994 -- Fidelity Investments released the following
information regarding its closed end fund, Fidelity Advisor Emerging Asia
Fund, Inc. (NYSE: FAE) as of August 31, 1994.
Total net assets were $135.8 million, of which 96.57 percent was in common
stocks, 0.60 percent was in convertible securities, and 2.83 percent was in
cash and equivalents. The fund had no fixed-income investments.
The top five country allocations were as follows: 1) Taiwan -- 24.81
percent, 2) Hong Kong -- 24.32 percent, 3) Maylaysia -- 11.93 percent, 4)
Thailand -- 9.47 percent, and 5) India -- 9.36 percent.
The top 10 equity holdings were as follows: 1) Hutchison Whampoa Ltd. --
3.43 percent, 2) Hong Kong Telecommunications -- 2.64 percent, 3) Bangkok
Bank Ltd (For Reg) -- 2.55 percent, 4) Sun Hung Kai Properties Ltd. -- 2.46
percent, 5) Resorts World Bhd -- 2.45 percent, 6) Tatung Company -- 1.97
percent, 7) Swire Pacific Ltd. C1 A -- 1.81 percent, 8) Hang Seng Bank --
1.81 percent, 9) Cathay Life Insurance -- 1.73 percent, and 10) United
Overseas Bank -- 1.73 percent.
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Peter Phillips, portfolio manager of Fidelity Advisor Emerging Asia Fund,
has provided the following investment review of the Fund's top country
allocations:
HONG KONG: "My holdings in Hong Kong have recently been reduced. The
interim profit reports were slightly below expectations as many companies
were adversely affected by rising property rentals and problems in
expanding their businesses in China. The residential property market has
weakened 15% - 20% during the last six months, reflecting the government's
anti-speculation measures and affordability pressures."
TAIWAN: "I have increased the Fund's positions in Taiwan, investing via
Euro CB's and GDR's. Taiwan is benefiting from a pick-up in external
demand with earnings growth in the electronics sector leading earnings
upgrading."
THAILAND: "The Fund has continued to increase its exposure to the
financial sector in Thailand. I feel that this sector is undervalued
relative to the local market and earnings are growing strongly as a result
of buoyant loan demand and rising fee income."
Singapore: "I have increased the Fund's exposure in the financial sector
of this market. Earnings growth is above expectations and the earlier
expectation of a squeeze in interest margins is not eventuating. While I
have increased my financial sector exposure, I have lessened my overall
exposure to the Singapore market due to increased valuation levels."
The following macroeconomic overview discussion has been provided by Peter
Phillips, portfolio manager of the Fund, via a conference call held on
October 20, 1994. Peter's thoughts are as follows:
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(small solid bullet) "Hong Kong remains one of the Fund's largest country
allocations, at over 24% of total assets. Sentiment during August and
September dipped due to another disappointing quarterly property auction by
the territory's government. I continue to feel the market's overall
fundamentals will provide eocnomic growth opportunities even though
investor confidence in the property sector has been dampened."
(small solid bullet) "I have increased the Fund's exposure in Indonesia
since I feel confident in market fundamentals. I have focused the Fund's
purchases in this market on newly listed consumption companies such as
Indofood and Tempo Scan."
(small solid bullet) "I have added to my positions in India at a 1% to 1.5%
rate per month. I have maintained this conservative stance based on
political guidelines regulating foreign investment in India. Purchases in
India are usually of small- to medium-cap companies, demanding extensive
"bottom-up" research by our team of analysts."
Details regarding the investment performance for the three month period
ended July 29, 1994 and for the period of commencement of operations (March
25, 1994) to July 29, 1994 are as follows:
The Fund's net asset value per share was $15.10 as of the close of business
on July 31, 1994. This represents an increase of $1.13 per share from the
net asset value per share of $13.97 reported on April 29, 1994. The Fund's
share price as traded on the New York Stock Exchange (NYSE) on July 29,
1994 was $13.875. This represents a decrease of $0.25 per share from the
share price of $14.125 on April 29, 1994. The Fund had a cumulative total
return of 8.09% for the three months ended July 29, 1994 based on net asset
value.
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From commencement of operations to July 29, 1994, the Fund's net asset
value per share increased $1.00 per share from the net asset value of
$14.10 on March 25, 1994. The Fund had a cumulative total return of 6.94%
based on net asset value. From commencement of operations to July 29,
1994, the Fund's share price as traded on the NYSE decreased $1.125 per
share from the share price of $15.00 on March 25, 1994.
For the three months ended July 29, 1994, the Fund had net realized losses
of $618,858 on investment transactions and net unrealized appreciation of
$10,125,213 on investments held. The Fund's net investment income
(consisting of dividend and interest income less operating expenses) for
the same period was $46,910.
From commencement of operations to July 29, 1994, the Fund had net realized
losses of $650,793 on transactions and net unrealized appreciation of
$9,510,796 on investments held. The Fund's net investment income
(consisting of dividend and interest income less operating expenses) for
the same period was $334,884.
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March 25, 1994
(commencement
Quarter Ended of operations) to
July 29, 1994 July 29, 1994
Total Net Assets $127,548,927 $127,548,927
Net Asset Value Per Share $15.10 $15.10
Gross Investment Income $600,248 $1,078,679
Per Share $0.07 $0.13
Net Investment Income $46,910 $334,884
Per Share $.01 $0.04
Net Realized Gain (Loss)
of Investments $(618,858) $(650,793)
Per Share $(0.07) $(0.08)
Change in Net Unrealized
Gain (Loss) on Investments $10,125,213 $9,510,796
Per Share $1.19 $1.13
Net Increase (Decrease)
in Net Assets
Resulting from Operations $9,553,265 $9,14,887
Per Share $1.13 $1.09
