Fidelity Asian Values plc (LON:FAS) has announced its half yearly report for the six months ended 31 January 2026
HIGHLIGHTS
- During the six-month period ended 31 January 2026, Fidelity Asian Values PLC reported an ordinary share price total return of +15.2% and a Net Asset Value (NAV) return of +10.9%.
- The benchmark index, the MSCI All Country Asia ex Japan Small Cap Index, produced a total return of +8.9% over the same timeframe.
- Taiwan Semiconductor Manufacturing Company (TSMC) was the largest contributor to performance.
- Underweight exposure to India, stock selection in Hong Kong and China, and exposure to copper and gold mining also contributed positively during the review period
INVESTMENT OBJECTIVE AND OVERVIEW
The Company’s objective is to achieve long-term capital growth principally from the stock markets of the Asian Region excluding Japan.
The Portfolio Manager, Nitin Bajaj, assisted by the Co-Portfolio Manager, Ajinkya Dhavale, aims to generate outperformance mainly through a fundamentals-driven bottom-up security selection approach within the Asia Pacific ex Japan smaller companies universe. The focus is on investing in smaller companies because they tend to be less well researched, which leads to greater valuation anomalies. The Portfolio Managers’ fundamental analysis involves the evaluation of various factors including, but not limited to, stock valuation, financial strength, cash flows, companies’ competitive advantages, business prospects and earnings potential. Their style is tilted towards value and a two to three year investment horizon.
Clare Brady, Chairman,
Fidelity Asian Values PLC
At a Glance
Six months ended 31 January 2026
Share Price total return 1,2
+15.2%
(31 January 2025: +4.1%)
Net Asset Value (“NAV”) per Share total return 1,2
+10.9%
(31 January 2025: +3.2%)
Comparative Index total return 1,3
+8.9%
(31 January 2025: -2.1%)
1 Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2 Alternative Performance Measures. See Glossary of Terms.
3 MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
TOTAL RETURN PERFORMANCE (%) 1
| Share price | NAV per ordinary share | Comparative Index 2 | |
| 1 year ended 31 January 2026 | +29.4 | +20.8 | +19.1 |
| 3 years ended 31 January 2026 | +32.4 | +29.8 | +37.6 |
| 5 years ended 31 January 2026 | +73.2 | +69.4 | +56.0 |
| ========= | ========= | ========= |
1 Calculated on the basis that dividends paid to shareholders are reinvested in the Company at the ex-dividend date.
2 MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms).
Sources: Fidelity and Datastream.
Past performance is not a guide to future returns.
Financial Highlights
| Assets | 31 January 2026 | 31 July2025 |
| Gross Asset Exposure 1 | £524.9m | £470.2m |
| Net Market Exposure 1 | £445.6m | £416.6m |
| Shareholdersʼ Funds | £414.3m | £402.7m |
| NAV per Share 1,2 | 649.52p | 604.69p |
| Gross Gearing 1,2 | 26.7% | 16.8% |
| Net Gearing 1,2 | 7.5% | 3.4% |
| Share Price and Discount Data | ||
| Share Price at the period end | 628.00p | 564.00p |
| Share Price: period high 3 | 628.00p | 566.00p |
| Share Price: period low 3 | 556.00p | 454.00p |
| Discount to NAV per Share at period end 1,2 | 3.3% | 6.7% |
| Discount: period high 3 | 8.1% | 14.5% |
| Discount: period low 3 | 2.5% | 6.7% |
| Results for the six months ended 31 January | 2026 | 2025 |
| Revenue Return per Share 1,2 | 9.37p | 7.88p |
| Capital Return per Share 1,2 | 54.37p | 8.71p |
| Total Return per Share 1,2 | 63.74p | 16.59p |
1 See Glossary of Terms.
2 Alternative Performance Measures. See Glossary of Terms.
3 For the six month period to 31 January 2026 and for the year ended 31 July 2025.
SUMMARY OF THE KEY ASPECTS OF THE INVESTMENT POLICY
The Company invests in securities of companies which the Portfolio Managers consider have fundamental value that has not been recognised by the market.
The Company invests principally in the Asian Region excluding Japan and the Portfolio Managers favour small and medium-sized companies. There are no restrictions in terms of size or industry of companies included in the portfolio and investments can be made in unlisted securities.
The Company may also invest into other transferable securities, collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for efficient portfolio management and investment purposes.
The Company operates a variable management fee arrangement which is calculated by reference to its performance against the Benchmark Index.
Portfolio Managers’ Half-Yearly Review
Performance Review
Over the six-month period ended 31 January 2026, the Company’s share price total return was +15.2%. The Company delivered a net asset value (“NAV”) total return of +10.9%. Over the same period, the Comparative Index, the MSCI All Country Asia ex Japan Small Cap Index (net) total return (in sterling terms), returned +8.9%.
Table 1: Company’s Share Price, NAV and Comparative Index total returns (as at 31 January 2026)
| Share Pricetotal returnper annum 1 (%) | NAV total returnper annum 1 (%) | ComparativeIndex total return per annum 1 (%) | |
| Tenure (since 30 Jun 2015) | +10.8 | +9.7 | +9.9 |
| 5 Years | +11.6 | +11.1 | +9.3 |
| 3 Years | +9.8 | +9.1 | +11.2 |
| 1 Year | +29.4 | +20.8 | +19.1 |
| 6 Months | +15.2 | +10.9 | +8.9 |
1 Only the data over 12 months is annualised.
Source: Fidelity International.
Before turning to performance attribution, it is worth revisiting our investment process. It is simple. We invest in good businesses run by management teams we trust. We buy them only when the price offers a comfortable margin of safety. We rely on Fidelity’s deep fundamental research to help protect the downside and, over time, to outperform the Comparative Index. Our portfolio construction is Index-agnostic. Although we measure performance and risk in the context of country and sector weights, they are not at the forefront of our minds when selecting positions for the Company. Our exposures are simply the result of the businesses we choose to own. Even a single holding can make us “overweight” a country or sector by the size of that position. This approach often leads us to take contrarian positions, as undervalued businesses are more likely to be found in sectors or geographies that are out of favour.
Consistent with this philosophy, a significant portion of the Company’s portfolio is currently invested in China and Indonesia. Exposure to India and Taiwan is substantially lower than that of the Index. From a sector perspective, we found attractive opportunities in gold and copper miners, classified as materials, as well as in consumer companies. In contrast, we have much lower exposure to areas of the market that are currently in favour and consequently not at attractive valuations, such as technology hardware.
We found fewer opportunities in India, due to high valuations. This contributed positively during the period under review. Stock selection in Chinese and Hong Kong equities also added to performance. Our Chinese holdings remain focused on consumer goods, materials, industrials, and real estate. In addition, our holdings in gold and copper miners proved rewarding, as their shares tracked rising commodity prices.
Our positioning in Taiwan and Indonesia detracted from performance in this period. In Taiwan, excluding the investment in Taiwan Semiconductor Manufacturing Company (TSMC) , the Company maintained limited exposure. AI-driven momentum pushed hardware stocks to peak valuations that offered limited margin of safety. Our Indonesian holdings lagged the broader Indonesian market, which had a strong year, and this weighed on relative performance. We have largely maintained our positions and remain confident in our preferred Indonesian holdings, given their attractive medium- to long-term prospects.
Table 2: Country Attribution over 6 months to 31 January 2026
| Average weight (%) | Cumulative returns (%) | Contribution to relative returns (%) | |||||
| Company (%) | Index(%) | Relative(%) | Stock selection | Market selection | Total | ||
| India | +11.1 | +28.6 | -17.5 | -13.8 | +1.6 | +4.3 | +5.9 |
| Others | +12.6 | 0.0 | +12.6 | – | +3.5 | 0.0 | +3.5 |
| China + Hong Kong | +39.4 | +18.1 | +21.3 | +3.8 | +3.1 | -0.9 | +2.3 |
| Singapore | +3.3 | +5.4 | -2.1 | +11.3 | +0.7 | 0.0 | +0.7 |
| Malaysia | +0.3 | +3.2 | -2.9 | +12.4 | +0.1 | -0.1 | 0.0 |
| Philippines | +1.5 | +1.0 | +0.6 | -3.0 | +0.3 | 0.0 | +0.2 |
| Thailand | +3.2 | +2.8 | +0.5 | +0.5 | -0.2 | -0.1 | -0.2 |
| Korea (South) | +11.1 | +15.4 | -4.3 | +24.3 | -0.9 | -0.6 | -1.4 |
| Indonesia | +18.1 | +2.5 | +15.5 | +28.0 | -6.2 | +3.2 | -3.1 |
| Taiwan | +5.6 | +23.0 | -17.4 | +33.9 | -1.7 | -4.0 | -5.7 |
| ————– | ————– | ————– | ————– | ————– | ————– | ————– | |
| Total Primary Assets | 106.2 | 100.0 | 6.2 | 8.9 | 0.3 | 1.9 | 2.2 |
| Cash & others | -6.2 | 0.0 | -6.2 | 0.0 | 0.0 | 0.0 | -0.2 |
| ————– | ————– | ————– | ————– | ————– | ————– | ————– | |
| Total | 100.0 | 100.0 | 0.0 | 8.9 | 0.0 | 0.0 | 2.0 |
| ————– | ————– | ————– | ————– | ————– | ————– | ————– | |
Source: Fidelity International, 31 January 2026. Company = Fidelity Asian Values PLC. Index = MSCI All Country Asia ex Japan. Small Cap Index (net) total return (in sterling terms). Total assets may exceed 100% where derivatives/gearing are used; ‘Cash & others’ reflects net cash/derivative exposures.
Table 3: Top 5 Contributors and Detractors over six months to 31 January 2026
Top 5 Contributors
| Order | Security | Average Active Weight 1 (%) | Gain/Loss(%) | Contribution to Portfolio Returns (%) |
| 1 | Taiwan Semiconductor Manufacturing (TSMC) | +5.2 | +40.2 | +1.5 |
| 2 | NAC Kazatomprom | +1.7 | +90.1 | +1.2 |
| 3 | Chow Sang Sang | +0.8 | +67.1 | +0.8 |
| 4 | Perseus Mining | +1.3 | +89.7 | +0.8 |
| 5 | Samsung Electronics | +1.4 | +59.9 | +0.7 |
| ————– | ||||
| Total | +5.0 | |||
| ————– |
1 Active weight is portfolio weight minus benchmark weight.
Source: Fidelity International, 31 January 2026.
Top 5 Detractors
| Order | Security | Average Active Weight 1 (%) | Gain/Loss(%) | Contribution to Portfolio Returns (%) |
| 1 | Short Position – name withheld | -0.8 | +570.3 | -1.9 |
| 2 | Winbond Electronics | -0.4 | +577.4 | -0.8 |
| 3 | Indofood CBP Sukses Makmur | +2.1 | -23.2 | -0.8 |
| 4 | Phison Electronics | -0.4 | +312.7 | -0.7 |
| 5 | Short Position – name withheld | -1.1 | +84.4 | -0.7 |
| ————– | ||||
| Total | -4.9 | |||
| ————– |
1 Active weight is portfolio weight minus benchmark weight.
Source: Fidelity International, 31 January 2026.
Taiwan Semiconductor Manufacturing Company (TSMC) was the largest contributor during the review period. It is the world’s leading semiconductor foundry and remains at the forefront of advanced chip manufacturing. Its scale and research capabilities, along with long-standing partnerships with companies such as Apple, Nvidia and AMD, underpin its competitive strength. The business requires significant capital and technical expertise. These factors create high barriers to entry and cement its role in global chip production. NAC Kazatomprom , the world’s largest uranium producer with high-quality mines in Kazakhstan, also contributed positively. It is the lowest-cost producer in a market where demand is rising, and supply is expected to remain tight. Chow Sang Sang benefited from stronger gold prices. The Hong Kong-listed jeweller has established brand recognition across Hong Kong and Mainland China. We took some profits in several of these holdings as share prices increased.
In contrast, our lack of exposure to AI-driven technology hardware names such as Winbond Electronics and Phison Electronics in Taiwan weighed on relative returns. Not owning an Asian semiconductor company until mid-October 2025 reduced relative performance by 0.8%, and our subsequent short position in the same company further pressured returns as its share price rose in the environment discussed earlier. Our short position in a semiconductor packaging company also proved detrimental. Indofood CBP Sukses Makmur , the leading instant noodles producer, was another detractor and contributed to the underperformance of the portfolio’s Indonesian holdings relative to the broader Indonesian market. The company holds leading positions across Indonesia, the Middle East, Africa and South-eastern Europe through its flagship Indomie brand. The brand enjoys strong consumer recognition and provides important differentiation in what is otherwise a highly competitive category. This brand strength allows the company to deliver solid results and defend its market position. We continue to hold the position.
Investment strategy and outlook
We prepared this commentary before recent geopolitical developments in the Middle East, which have contributed to a sharp increase in market volatility and materially changed the macroeconomic and geopolitical backdrop. As a result, the near-term outlook is now more uncertain. However, periods of disruption can also create opportunities to invest in high quality businesses at attractive valuations.
We continue to look for stock selection opportunities across the region. In China, the market has re-rated, driven by a narrow group of high-dividend and thematic stocks. Headline valuations look stretched. However, our holdings still offer healthy returns and adequate margin of safety. In Korea, earnings growth has been largely AI-driven. However, weak governance and poor capital allocation continue to weigh on return on equity. Policy efforts to improve governance are encouraging, but valuations have already re-rated, and we have started to take some money off the table. In India, valuations remain high, although we are beginning to see selective pockets of opportunity. Indonesia continues to offer established companies with durable franchises and solid balance sheets at attractive margins of safety. We do not believe the MSCI’s recent move to demand improved ownership transparency signals economic weakness. Instead, this may present an opportunity for regulators to improve transparency and market structure, which we view as positive over the long-term.
Overall, the average valuation of our reference index, the MSCI AC Asia ex Japan Small Cap Index, is now above its long-term average. Relative to its own history, the Index no longer looks ‘cheap’. However, this headline number masks a wide gap between value and growth stocks.
The chart in the Half-yearly Report illustrates the elevated gap in price to earnings multiples between Asian ex Japan small cap growth and value stocks over the past decade. Small cap value stocks continue to trade at a meaningful discount.
A similar valuation gap can be seen between our portfolio and the broader market. The Company’s price-to-earnings (P/E) ratio is 10.4x, compared with 17.8x for the MSCI All Country Asia ex Japan Small Cap Index. Our focus on high-quality businesses is reflected in the portfolio’s higher return on equity (ROE) of 17.8%, compared with the index ROE of 10.2%. We believe this difference reflects the strength of Fidelity’s research platform. It allows us to identify good businesses that are still overlooked and attractively valued.
We remain confident in our positioning. We own strong companies at a meaningful discount to market valuations. This disciplined approach has delivered results over the past decade, and we believe it is well placed to continue doing so over the next three to five years.
Nitin Bajaj Ajinkya Dhavale
Portfolio Manager Co-Portfolio Manager
27 March 2026
