Asia investment trust (LON:FAS) overweight in China, Indonesia and Australia versus Index

Fidelity Asian Values plc (LON:FAS) has announced its monthly summary for July 2024.

Portfolio Manager Commentary 

The Trust’s NAV rose 3.2% during the 12-month period ended 31 July 2024, underperforming its reference index which rose by 13.7%. The Trust’s share price fell 1.7% over the same period.   

Stock selection was the key contributor to the Trust’s relative performance. Our investment process leads us to take contrarian positions in undervalued businesses. We have been finding a lot of such opportunities in China, where heighted perception of risks has led to a sharp decline in stock prices. But despite attractive valuations China continues to underperform and drag down the Trust’s relative returns versus the index. A large part of the Trust’s underperformance also came from India, where we have a large bottomup driven underweight versus the index, as Indian market continued to outperform other Asian markets during the period. From a sector perspective, selections within information technology and utilities added value.   

Given this approach, stock selection was the key contributor to the Trust’s relative performance. Of late, investors seem to be rotating out of growth stocks and into value names in the Asian small cap space, which also aided performance. This trend should continue as small cap value stocks remain at a significant discount to small cap growth stocks in Asia.  

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