Fidelity Closed-End Funds Review

Welcome to the third edition of Marten & Co’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:

  • The appointment of Nitin Bajaj as manager of Fidelity Asian Values (FAS) has been a very successful move for the trust. It has recently made a bonus issue of subscription shares allowing existing holders the opportunity to increase their exposure to the strategy.
  • Fidelity Japanese Values’ (FJV’s) performance has been turning a corner, aided by weak sterling. Corporate earnings are weak but its manager thinks these are close to a nadir and, with the Japanese government working hard to increase real wages, he has increased exposure to consumer discretionary spending as he expects this to get a boost.
  • The manager of Fidelity Special Values (FSV) approaches the fifth anniversary of his appointment. Alex’s strategy has been transformative for the trust and we take a look at this in more detail.

Special feature: Fidelity Special Values

Alex Wright took over the management of Fidelity Special Values (FSV) in September 2012. He manages the portfolio using a value/contrarian style, which has proved to be very successful for the trust, affording it peer-group-beating performance. Reflecting this, the trust has experienced a marked improvement in demand for its shares. Its discount has narrowed from 15.4% when Alex took over, to 1.6% today. In our special feature, we take a look at FSV’s strategy, the investment process, Alex’s outlook and some key themes currently being used in the management of the portfolio.

You can access the funds’ website here

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