£186.2m market cap
138p last close
Fidelity Japan Trust (formerly Fidelity Japanese Values) aims to achieve long-term capital growth by investing predominantly in equities and related securities of Japanese companies. Although its investment approach remains unchanged, it has recently changed its benchmark from a mid- and small-cap Japan index to the TOPIX index (total return, in sterling terms), and its AIC sector from Japanese Smaller Companies to Japan.
Fidelity Japan Trust (FJV) has a bottom-up, research-intensive investment process, a flexible approach to gearing and a focus on stocks across the market cap spectrum that offer growth at a reasonable price (GARP). Lead manager, Nicholas Price, has just notched up three years in charge, but has been with Fidelity in Japan for 25 years, first as part of the well-resourced analyst team and later as a portfolio manager across a range of mandates. FJV was known as Fidelity Japanese Values until May 2018, but changed its name as one of a number of administrative changes designed to align with the trust’s all-cap, growth-focused strategy. Short- and longer-term performance have been strong, both in absolute terms and relative to indices; the discount widened over the summer while NAV performance remained positive, supporting near-term re-rating potential.