Fidelity Asian Values plc (LON:FAS) has announced its monthly summary for November 2023.
Portfolio Manager Commentary
The Trust’s NAV rose 4.3% during the 12-month period ended 30 November 2023, outperforming its reference index which rose by 9.5%. The Trust’s share price rose 6.8% over the same period.
Stock selection was the key contributor to the Trust’s relative performance, particularly in China. We have been finding a lot of such opportunities in China, where heightened 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. On the other hand, an underweight in Taiwan also held back relative returns. From a sector perspective, selections within energy and utilities added value. The Trust is managed with an absolute return focus, completely agnostic of the index, with a bias towards high quality
and value stocks.
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.
Overall, the Trust was overweight consumer discretionary, financials, consumer staples and utilities among others. At a country level, it was overweight China, Indonesia, and Hong Kong among others.
