(Alliance News) - Fidelity Japan Trust PLC on Thursday reported a rise in net assets in the first half, outperforming its benchmark.
At June 30, the trust's NAV per share stood at 159.35 pence compared to 138.77p at December 31, which represents a rise of 15%.
Fidelity Japan's net assets grew 15% in the first half to GBP214.8 million from GBP187.5 million at the end of 2018.
The trust's NAV total return in the first half was 14.8%, outperforming its benchmark which added 7.6% during the same period.
Fidelity Japan said its holdings in services and medical technology were the "key drivers" of the outperformance. The trust also noted its underweight exposure to banks in a "declining interest rate environment" also supported its returns.
Portfolio Manager Nicholas Price said: "Japanese stocks have lagged their global peers so far this year, as uncertainty over US-China trade frictions and the impact on the global economy have clouded the outlook for corporate earnings. The consensus of analyst forecasts is that the market appears to have bottomed out and earnings trends should stabilise in the coming quarters. However, share prices are likely to remain volatile amid a steady stream of political newsflow.
"With valuations testing historical lows in some parts of the market, there are opportunities to capitalise on disconnects between near term sentiment and mid term fundamentals."
Shares in Fidelity Japan were flat in London on Thursday at 153.00 pence each.
Fidelity Japan Trust (FJV)