Fidelity Japan NAV down 15.4% in 2018 – Fidelity Japan (FJV), the small and mid-cap fund, has published its annual results for the year to 31 December 2018. The company had a difficult year in 2018 with its NAV and shares down 15.4% and 16.2% in sterling terms respectively, underperforming the 8.3% decline in the benchmark TOPIX index. The NAV and share price declines were cushioned by the yen’s appreciation to ¥140 against sterling, which offered some support for sterling-based returns.
Drivers and detractors
Discussing the main movers of the portfolio in 2018, portfolio manager, Nicholas Price, said: “The company benefited from the strong contribution from holdings in Yamaha Corporation (a maker of musical instruments), Raksul (a provider of online printing services) and Asahi Intecc (a manufacturer of medical equipment). Ultimately, however, stock selection drives performance and the aggregate level of contribution was negative over the year. Individual holdings that weighed on returns included Sysmex (a maker of clinical laboratory equipment), Yume no Machi Souzou Iinkai (a provider of online food delivery services) and UT Group (a worker dispatch company). These companies are still held in the portfolio.”
Japan participating in 2019 rally
The Japanese stock market has rebounded from the fourth quarter sell-off, though as FJV chairman, David Robins, discusses in his statement, “markets generally remain vulnerable to the effects of trade frictions on the global economy and slowing growth in China and Europe. While external headwinds may prove challenging at times, a benign domestic economic and policy backdrop together with attractive valuations are supportive of Japanese equities.”
FJV: Fidelity Japan NAV down 15.4% in 2018