# Fidelity Japan Trust shares continue to rise on positive investments (LON:FJV)

- Link: https://www.directorstalkinterviews.com/fidelity-japan-trust-shares-continue-to-rise-on-positive-investments-lonfjv/4121121106
- Published: 2023-06-06T13:00:43+01:00
- Author: Amilia Stone

**[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))
published its monthly factsheet for the period ended 30th April 2023.

**Portfolio Manager CommentaryThe Trust recorded NAV returns of 7.4% over the 12
months to April 2023, outperforming the reference index, which returned 5.8%. The
discount to NAV widened over the same period and the Trust’s share price returned
4.1%.

Positive stock picking in the chemicals and precision instruments sectors was a 
key driver of the Trust’s outperformance over the period. Key active positions in
global industry leaders, complimented by reopening names and technology-related 
cyclicals, ranked among the standout contributors to performance.

At a sector level the underweight exposure to automobiles supported relative returns.
Conversely, holdings in software companies were the most significant detractors.
Given that the rise in US interest rates is losing steam, the Chinese economy is
recovering and the manufacturing cycle is bottoming out, we are seeing opportunities
in early tech cyclicals. Japanese retailers and consumer product companies that 
have a high earnings contribution from China stand to benefit from the country’s
reopening. Related to this, a further recovery in inbound demand, including the 
return of Chinese tourists, will benefit retailers and various hospitality industries.
Meanwhile, reforms aimed at enhancing capital efficiency are gaining traction, with
regulators detailing new requirements and calling for fast implementation. Against
this backdrop, we are seeing a positive shift among growth companies utilising excess
cash to improve shareholder returns.

[FJV-April-23-factsheet](https://www.directorstalkinterviews.com/wp-content/uploads/2023/06/FJV-April-23-factsheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/06/FJV-April-23-factsheet.pdf)

**Fidelity Japan Trust PLC** (LON:FJV) aims to be the key investment of choice for
those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable
price’ (GARP) investment style and approach – which involves identifying companies
whose growth prospects are being under-appreciated or are not fully recognised by
other investors. 

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