# Rotation into small cap value stocks benefits Asia investment trust FAS

- Link: https://www.directorstalkinterviews.com/rotation-into-small-cap-value-stocks-benefits-asia-investment-trust-fas/4121108682
- Published: 2023-03-03T16:12:01+00:00
- Author: Amilia Stone

Asia investment trust, **[Fidelity Asian Values PLC](https://www.directorstalkinterviews.com/company/fidelity-asian-values-plc/fas.l)**(
[LON:FAS](https://www.directorstalkinterviews.com/company/fidelity-asian-values-plc/fas.l))
monthly factsheet for January 2023

**Portfolio Manager Commentary**

The investment trust’s NAV rose 12.1% during the 12-month period ended 31 January
2023, outperforming its reference index which fell by 1.3%. The Trust’s share price
rose 14.5% over the same period.

Stock selection was the key contributor to the fund’s relative performance, particularly
in China, Indonesia and India. Meanwhile, selections in Singapore and Sri Lanka 
held back the relative performance. From a sector perspective, health care, financials,
and materials added value.

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. 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.
He remains biased towards smaller companies due to three reasons. First, this space
provides opportunities to invest in “winners of tomorrow” before they become well
known. Secondly, this space is not widely followed by professional investors and
hence offers a higher likelihood of finding “mispriced businesses”. Lastly, with
over 19,000 listed companies, there is a lot to choose among “winners of tomorrow”
and “mispriced businesses”.

Overall, the Trust was overweight consumer discretionary and financials among others.
At a country level, it was overweight China, Australia and Indonesia.

[FAV-Jan-factsheet](https://www.directorstalkinterviews.com/wp-content/uploads/2023/03/FAV-Jan-factsheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/03/FAV-Jan-factsheet.pdf)

Fidelity Asian Values Plc (LON:FAS) is an Asia investment trust that provides shareholders
with a differentiated equity exposure to Asian Markets.

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