Fidelity Japanese Values PLC aims to be the key investment of choice for those seeking Japanese smaller companies exposure. This Investment Trust invests in an actively managed portfolio of securities, primarily of small- and medium-sized Japanese companies listed or traded on Japanese stock markets. It follows a ‘growth at a reasonable approach’ (GARP) and aims to identify companies that are transforming from stable domestic cash generators to the future pan-Asian growth stories.
Japan’s economy is the third largest in the world and is the world's second largest developed economy. With a focus on smaller- and medium-sized Japanese companies, many of which are under-researched, opportunity looms for mispriced stocks, whose potential is vigorously assessed before making any investment decisions.
For this trust it is all about joining the dots between different ideas and forming a new line of enquiry. Research is key.
The Portfolio Manager, Nicholas Price’s, approach is anchored in the belief that a rigorous, bottom-up approach to active management can consistently identify companies where the market is underestimating or mis-pricing future growth potential. This naturally leads him to favour smaller and medium-sized companies, where lower levels of analyst coverage can often create some great mispriced opportunities and unearth companies at an early stage of their development.
Nicholas follows a consistent ‘growth at reasonable price’ investment approach, utilising Fidelity’s local research capability, as well as the broader global research network. He focuses on gathering multiple information sources: from attending industry conferences to visiting university professors, from talking to unlisted companies to consulting senior management.
A key pillar of Nicholas’s investment process is detecting signs of change such as 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.
Past performance is not a reliable indicator of future results. Fidelity does not give advice. If you’re unsure of the suitability of an investment for you, you should speak to a financial adviser.
The value of investments can go down as well as up so investors may get back less than they invest. Overseas investments are subject to currency fluctuations. This investment trust can gear through the use of bank loans or overdrafts and this can be achieved through the use of derivatives. Their use may lead to higher volatility in the Net Asset Value and Share Price. This investment trust may invest more heavily than others in smaller companies, which can carry a higher risk because their share prices may be more volatile than those of larger companies.
Registered in England and Wales; registration number 02885584.
Registered office: FIL Investments International, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.
†Please note that Fidelity does not take responsibility for the content of external links.