Asia investment trust NAV rises as small cap value stocks remain attractive (LON:FAS)

Fidelity International

Fidelity Asian Values Plc (LON:FAS) Monthly Summary as at 31 August 2022

Portfolio Manager Commentary 

The Trust’s NAV rose 7.6% during the 12-month period ended 31 August 2022, outperforming its reference index which fell by -1.4%. The Trust’s share price fell -2.0% over the same period. 

Stock selection was the key contributor to the fund’s relative performance, particularly in China, South Korea and India. Meanwhile, selections in Taiwan and Sri Lanka held back the relative performance. From a sector perspective, selections within health care, industrials, and materials added value. The fund is managed with a value approach, which came into favour as value stocks outperformed the growth names in the first half of 2022, thus adding to the fund performance. 

Of late, investors seem to be rotating out of growth stocks and into value names in the Asian small cap space, but this trend should continue as small cap value stocks remain at a significant discount to small cap growth stocks in Asia. The manager continues to believe that owning good businesses, run by competent managements at attractive prices is the most time-tested way to make money in the stock market. Overall, the Trust was overweight consumer discretionary, financials, consumer staples and energy among others. At a country level, it was overweight China, Australia and Indonesia among others.

Fidelity Asian Values provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.

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