Fidelity Japan Trust PLC
New for 2019. Invests in Japanese growth companies of all sizes
Fidelity Japan is a newcomer to our Rated Funds for 2019, replacing JP Morgan Japanese. It is the stronger performer since its new manager took over in 2015 and has recently undergone some changes that we feel will be positive.
Nick Price has spent 25 years at Fidelity, specialising in Japanese equities from the outset. He joined its Tokyo office in 1993 as a research analyst before becoming a portfolio manager in 1999.
With this trust, he was handed a more flexible mandate in 2018 allowing him to invest in the tiniest “micro” stocks as well as the largest companies in Japan. As part of the new “multi-cap” approach, the trust also doubled the limit to 10% that Price can invest in illiquid or hard-to-trade unlisted companies that have not floated on the stock market.
The trust changed its name from Fidelity Japanese Values to Fidelity Japan Trust to mark the changes, which differentiate it from Baillie Gifford Shin Nippon, whose performance it could not match in the Japanese smaller companies sector.
Price continues to look for growth at a reasonable price – companies whose growth prospects are being under-appreciated by other investors. A key pillar of his investment process is detecting signs of change in fundamentals, environment, sentiment and valuations.
He also believes it is vital to maintain a strong sell discipline by naturally trimming outperformers and recycling new ideas, re-testing the mid-term growth thesis for signs of change and moving on if there are more attractive opportunities elsewhere.
Shares in the trust have consistently traded at a discount to net assets in recent years and an average of almost 10% over the past year.
Narrative and rating as of January 2019.See all Money Observer rated funds
|KOSE Corp||6.83 %|
|Yamaha Corp||5.66 %|
|Daikin Industries Ltd||3.77 %|
|Makita CorpCFD||3.74 %|
|MISUMI Group Inc||3.72 %|
|Recruit Holdings Co LtdCFD||3.62 %|
|Shimano Inc||3.23 %|
|M3 IncCFD||2.84 %|
|Don Quijote Holdings Co Ltd||2.84 %|
|Suzuki Motor Corp||2.76 %|
|Consumer Cyclical||23.83 %|
|Consumer Defensive||11.60 %|
|Basic materials||9.95 %|
Nicholas Price is a Tokyo-based portfolio manager for Fidelity Worldwide Investment. He joined Fidelity in 1993 as a research analyst, covering retail, major banks, brokerages, consumer electronics and pharmaceuticals. In 1999, Nicholas was promoted to portfolio manager, running Japanese equity mandates for domestic institutions. He now manages a number of Japanese equity portfolios on behalf of both domestic and overseas clients. Nicholas holds an M.A. in History & International Relations from Cambridge University. He also studied Japanese language at Keio University.
Data provided by Morningstar.
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