Asia investment trust, Fidelity Asian Values PLC (LON:FAS) monthly factsheet for March 2023.
Portfolio Manager Commentary
The Trust’s NAV rose 9.8% during the 12-month period ended 31 March 2023, outperforming its reference index which fell by 4.7%. The Trust’s share price rose 16.4% over the same period.
Stock selection was the key contributor to the Trust’s relative performance, particularly in China, Indonesia and India. Meanwhile, selections in Singapore and the Philippines held back the relative performance. From a sector perspective, selections within health care and financials added value. The Trust is managed with an absolute return focus, 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. 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.
Overall, the Trust was overweight consumer discretionary, financials, consumer staples and energy among others. At a country level, it was overweight China, Australia and Indonesia among others.
Fidelity Asian Values Plc (LON:FAS) is an Asia investment trust that provides shareholders with a differentiated equity exposure to Asian Markets.