Fidelity Japan Trust PLC (LON:FJV) published its monthly factsheet for the period ended October 2023.
Portfolio Manager Commentary
The Trust recorded NAV returns of -0.6% over the 12 months to October 2023, underperforming the reference index, which returned 11.6%. The Trust’s share price fell by 3.4% over the same period and
the discount to NAV widened.
Holdings in factory automation and machinery-related companies that faced a temporary slowdown in earnings due to supply chain disruptions and sluggish demand in China detracted from performance. However, signs of a recovery in the order cycle are emerging. The underweight exposure to traditional value areas of the market, primarily banks and automobiles, weighed on relative returns. Conversely, key active positions in technology-related cyclicals outperformed ahead of an expected bottoming of the
semiconductor cycle. Holdings in differentiated small caps also added value.
