Fidelity Japanese Values saw its net asset value return 4.2% over the six months ended 30 June 2014. This compares favourably with the Russell Nomura mid/Small Cap index which returned 0.9%. The discount widened slightly and the return to shareholders was 3.5%.
The fund’s gearing (in the form of contracts for difference) helped but it was stock selection that made the greatest difference to returns. The manager’s report mentions positive contributions from holdings in Sanix (small scale solar panels), Japan Aviation Electronics (connectors for smartphones and automobiles rather than anything to do with aviation)and M3 (marketing and consumer support for pharmaceutical companies).
Fidelity Japan Values intends to issue subscription shares to shareholders on the basis of one subscription share for every five ordinary shares held. The subscription shares will have a two year life and will be convertible into ordinary shares in exchange for the NAV on 26 august 2014 plus 2%.