Fidelity Japan Trust PLC

Japanese Equities

Rated Fund 2019-20. Invests in Japanese growth companies of all sizes    

The addition of Fidelity Japan Trust to our Rated Funds in 2019 was a good call – it has significantly outperformed the Tokyo Stock Price index, commonly known as the Topix, over the past year. In fact, it has consistently outperformed since Nick Price took the helm in 2015. He has spent 26 years at Fidelity, specialising in Japanese equities from the outset. His stock selection in technology-related sectors made a material contribution to performance last year, with semiconductor stocks advancing on expectations of a cyclical recovery going into 2020. Holdings in fast-growing food and services companies also added value.

Price runs a multi-cap portfolio – holding the tiniest micro stocks as well as the largest companies in Japan. He looks for growth at a reasonable price by investing in companies whose growth prospects are under-appreciated. A key pillar of his investment process is detecting signs of change in fundamentals, environment, sentiment and valuations.

Given the uncertainty facing the global economy, and with Japanese stock valuations testing historical lows in some parts of the market, he sees “opportunities to capitalise on disconnects between near-term sentiment and mid-term fundamentals” and has been selectively adding names at trough valuations. These include globally competitive component-makers well-positioned to benefit from the advent of a new content cycle that will accompany the shift to 5G smartphones.

Since 2018 Price has been able to invest up to 10% of the trust’s assets in unlisted companies, and he continues to look for opportunities here, where he had just a little over 1% at the end of 2019. Shares in the trust have consistently traded at a discount to net assets in recent years. They have ranged from 3% to 17% since 2017.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Fidelity Japan Trust PLC
Manager
FIL Investments International
Type
Closed Ended Investment Company
ISIN
GB0003328555
Sector
Japan
Launched
15/03/1994
OCF
0.97 %
Risk Rating
5
3 Year Sharpe
0.60
3 Year Alpha
6.32
Yield
0 %
Benchmark
TOPIX TR JPY
Fund Size
£ 232.99 million
NAV
196
Gearing
125
Discount Premium
-9
The Company aims to achieve long term capital growth by investing predominantly in equities and their related securities of Japanese companies.
Holding %
Justsystems Corp 7.11 %
MISUMI Group Inc 5.46 %
Olympus CorpCFD 4.54 %
Shimano Inc 4.10 %
Eisai Co LtdCFD 3.56 %
SoftBank Group CorpCFD 3.35 %
Keyence Corp 3.28 %
Daikin Industries Ltd 2.98 %
Murata Manufacturing Co Ltd 2.90 %
Yamaha Corp 2.78 %
Region %
Japan 100.00 %
Sector %
Technology 38.33 %
Industrials 25.72 %
Consumer Cyclical 21.49 %
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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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.