Fidelity Asian grows net asset value but underperforms benchmark

Fri, 11th Oct 2024 13:34

(Alliance News) - Fidelity Asian Values PLC on Friday reported that it missed its benchmark index by a considerably long shot, but kept its annual dividend unchanged.

For the year ended July 31, the Asia-focused investor delivered a positive 3.2% net asset value total return.

Its benchmark, the MSCI All Countries Asia ex Japan Small Cap index, produced a positive 13.7% total return.

Fidelity Asian's NAV per share, however, rose to 551.66 pence as of July 31, from 549.33p on the same day in 2023.

The stock was trading 0.1% lower at 517.32p per share on Friday afternoon in London.

The investor will pay a final dividend of 14.5p per share, unchanged on-year.

Looking ahead, Chair Clare Brady commented: "As a board, we are cognisant of the geopolitical risks around investing in China, given potential higher US trade tariffs and the impact of 'de-globalisation', and this has in part informed our decision to limit the aggregate China and Hong Kong exposure.

"The portfolio's focus on more domestic names should limit the influence of global factors on these companies."

Brady said Fidelity Asian continues "to see good prospects for [our] portfolio of undervalued, quality businesses.

"With much of the investing world continuing to be in thrall to all things AI, your portfolio managers' positioning in unloved and overlooked areas arguably carries limited downside potential, compared to other areas of the market, with the possibility of significant upside, as has been seen in previous years.

"As a contrarian strategy, there may be times when the portfolio is sailing into the wind, but [the portfolio managers] remain very disciplined and are sticking to their proven long-term investment process."

By Emma Curzon, Alliance News reporter

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Fidelity Asian Values