Fidelity Japan Trust PLC

Japanese Equities

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. 

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Name
Fidelity Japan Trust PLC
Manager
FIL Investments International
Type
Closed Ended Investment Company
ISIN
GB0003328555
Sector
Japan
Launched
15/03/1994
OCF
1.31 %
Risk Rating
5
3 Year Sharpe
0.95
3 Year Alpha
3.83
Yield
0 %
Benchmark
TOPIX TR JPY
Fund Size
£ 178.85 million
NAV
142
Gearing
118
Discount Premium
-7
To achieve long term capital growth from an actively managed portfolio of securities, primarily of small and medium sized Japanese companies, listed or traded on Japanese stockmarkets. Portfolio Manager aims to achieve a total return on total assets of the company over the longer term in excess of the Reference Index, the Russell Nomura Mid/Small Cap Index, as expressed in sterling terms.
Holding %
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 %
Region %
Japan 100.00 %
Sector %
Technology 25.67 %
Consumer Cyclical 23.83 %
Industrials 19.46 %
Consumer Defensive 11.60 %
Basic materials 9.95 %
Healthcare 5.49 %
Name
FIL Investments International
Address
TN11 9DZ, Tonbridge, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Nicholas Price
Joined 09/01/2015

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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