IT and utilities selections add value in Asia investment trust (LON:FAS)

Fidelity
[shareaholic app="share_buttons" id_name="post_below_content"]

Fidelity Asian Values plc (LON:FAS) has announced its monthly summary for August 2024.

Portfolio Manager Commentary

Stock selection was the key contributor to the Trust’s relative performance. Our process is driven by owning good businesses run by management we trust and owning them only when we have ample margin of safety – this often leads us to take contrarian positions as it is easier to find undervalued businesses in countries which are out of favour with investors. Following this, we have a significant percentage of our portfolio in China versus the index but here small caps saw a sharp fall in share prices. Conversely, India, where our portfolio has a large underweight due to valuation concerns, rose strongly and outperformed the index which led to the Trust’s underperformance. From a sector perspective, selections within information technology and utilities added value.  

Given this approach, stock selection was the key contributor to the Trust’s relative performance. Of late, investors seem to be rotating out of growth stocks and into value names in the Asian small cap space. This trend should continue as small cap value stocks remain at a significant discount to small cap growth stocks in Asia.  

Overall, the Trust was overweight consumer discretionary, financials, consumer staples and energy, among others. At a country level, it was overweight China, Indonesia, and Australia, among others.  

The Trust’s NAV rose 3.1% during the 12-month period ended 31 August 2024, underperforming its reference index which rose by 13.1%. The Trust’s share price fell 3.5% over the same period.

Twitter
LinkedIn
Facebook
Email
Reddit
Telegram
WhatsApp
Pocket
Find more news, interviews, share price & company profile here for:
Explore strategic insights from top funds like Fidelity Special Values and JPMorgan European Discovery, highlighting real estate credit and Asian markets.
Discover strategic insights on navigating Asian markets amidst China's stimulus with Nitin Bajaj, focused on quality firms and strong fundamentals.
Fidelity Asian Values plc (LON:FAS) reports a 7.2% NAV rise for the year ending September 2024, driven by strategic stock selections and contrarian positions.
Fidelity Asian Values plc (LON:FAS) announces a 14.5p final dividend for 2024, offering unique equity exposure in Asia's booming markets.
Fidelity Asian Values PLC (LON:FAS) reported a 3.2% NAV return for the year ending 31 July 2024, with a final dividend of 14.5p per share approved.
Fidelity Asian Values plc (LON:FAS) reports its July 2024 summary, highlighting a 3.2% NAV rise over 12 months.

Search

Search