# Fidelity Japan Trust NAV and share price both rise over 14% in 12 months (LON:FJV)

- Link: https://www.directorstalkinterviews.com/fidelity-japan-trust-nav-and-share-price-both-rise-over-14-in-12-months-lonfjv/4121124632
- Published: 2023-08-03T15:02:27+01:00
- Author: Emily Johnson

**[Fidelity Japan Trust PLC](https://www.directorstalkinterviews.com/company/fidelity-japan-trust/fjv.l)**(
[LON:FJV](https://www.directorstalkinterviews.com/company/fidelity-japan-trust/fjv.l))
aims to achieve long term capital growth by investing predominantly in equities 
and their related securities of Japanese companies. The trust has now issued its
Monthly Factsheet as of the 30th June 2023.

**Portfolio Manager Commentary**

The Trust recorded NAV returns of 16.7% over the 12 months to June 2023, outperforming
the reference index, which returned 12.9%. The Trust’s share price rose by 14.8%
over the same period and the discount to NAV widened marginally.

Positive stock picking in the electric appliances, information & communications
sectors was the primary driver of the Trust’s outperformance over the period. Key
active positions in technology related cyclicals started to perform ahead of an 
expected bottoming of the semiconductor cycle, while selected SaaS companies regained
lost ground. Reopening names and under covered small caps also added value. Conversely,
holdings in manufacturers that faced a temporary slowdown in earnings due to supply
chain disruptions and procurement difficulties detracted from performance.

Japan’s delayed reopening and the return of inbound tourists are driving growth 
in consumption and services demand. At the same time, the economy is transitioning
to a moderately inflationary state as companies are finding it easier to raise prices
and are increasing wages. There is growing pressure on firms to enhance their corporate
value and utilise excess cash to fund growth investments and shareholder returns.
While signs of weakness in China’s recovery and the risk of a US recession represent
potential headwinds that could prompt a near-term adjustment, this accumulation 
of positive factors is supportive of the mid-to-long term outlook for the Japanese
market.

[Fidelity Japan Trust June factsheet](https://www.directorstalkinterviews.com/wp-content/uploads/2023/08/Fidelity-Japan-Trust-June-factsheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/08/Fidelity-Japan-Trust-June-factsheet.pdf)

Fidelity Japan Trust PLC seeks to add value through detailed research. Fidelity’s
proprietary research forms the cornerstone of the investment process and drives 
the Trust manager’s bottom-up stock selection approach. He works closely with sector
analysts, as well as our dedicated small-cap analysts, and is also able to call 
upon Fidelity’s global research network. The portfolio manager favours companies
with superior mid- to long-term earnings growth potential, competent management 
focused on raising shareholder returns and attractive absolute and relative valuations.
The manager also assesses the following: business strategies; technical and/or operational
advantages; competitive position. While the trust is free to invest across a wide
range of industries, sector allocation is a direct result of the manager’s bottom-
up stock selection.

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