QuotedData

Quoted Data

sign up for emailed equity research
Quick  |   Customised Register
Latest News
Home  »  Quoted Fund Research  »  Fidelity Closed-End Funds Review

Fidelity Closed-End Funds Review

27
2017
July

QuotedData is publishing a new Fidelity Closed-End Funds review. This covers funds in the Asia-Pacific ex-japan, Japanese Smaller Companies and UK All Companies sectors.

Welcome to the fourth edition of QuotedData’s Fidelity Closed-End Funds Review – a regular publication looking at Fidelity and recent developments in three of its investment trusts – Fidelity Asian Values, Fidelity Japanese Values and Fidelity Special Values.

In this issue:

  • It is now over two years since Nitin Bajaj was appointed as manager of Fidelity Asian Values in April 2015. Nitin’s appointment has been good for the trust – it has markedly outperformed its peer group and benchmark since Nitin took up the reins. Year-to-date, the trust has faced a headwind as large-cap stocks (in which the trust has an underweight position) have outperformed, but its absolute returns (the trust’s prime focus) have nonetheless been very strong. Nitin expects that in time this headwind will reverse and the trust will benefit.
  • Fidelity Japanese Values has performed strongly this year as investors have switched their focus back towards growth stocks. When QuotedData last published, the trust’s manager, Nicholas Price, felt that weak Japanese earnings were close to their nadir; these have also recovered strongly. Despite these improvements, Nicholas thinks that shareholder returns (also at a high) still have room to grow.
  • With market valuations close to all-time highs, Fidelity Special Values’ manager, Alex Wright, is sounding a note of caution and has moved the UK-focused trust to a circa 3% net cash position (a more natural level is 10% net borrowings). However, with his contrarian style, the trust currently has an overweight position in more cyclical stocks as this is where Alex sees value. The trust has an underweight exposure to ‘expensive defensives’, which he believes will suffer as interest rates rise.

Special feature: Fidelity Asian Values

In this special feature, there is a recap of Nitin’s investment approach, an update on his market outlook and two case studies of stocks he has added to the trust’s portfolio: Power Grid Corporation of India and TISCO Financial Group.

170727 Fidelity Inv Trusts QD

Fidelity Closed-End Funds Review: FAS, FJV, FSV

 

 

Contact us

captcha
Share This

Share This

Share this with your peers and friends!