(Alliance News) - Fidelity Japan Trust PLC on Wednesday reported a sharp rise in net assets over 2019, significantly outperforming its benchmark.
At December 31, the trust's NAV per share stood at 189.55 pence, up from 138.77p at the same point the year before.
Fidelity Japan's net assets grew in 2019 to GBP252.5 million from GBP187.5 million.
The trust's NAV total return in 2019 was 36.6%, more than double the 14.6% gain from its Reference Index.
Chair David Robins said: "Holdings in mid to large cap growth stocks were the primary source of the company's strong outperformance. In particular, positions in electronic component makers and semiconductor related stocks such as Murata Manufacturing that were built up through the first half of the year were among the standout contributors to returns. Holdings in domestic oriented services companies that continued to increase their earnings were also strong performers, as were high quality medical technology names such as Olympus and Sysmex. At a sector level, the company's underweight exposure to laggard defensive sectors and financials further supported relative returns."
Since the start of 2019, however, Robins said the trust's NAV per share has dropped 22.5%.
"Whilst this is a significant setback, your portfolio manager had avoided various sectors on fundamental grounds which have proved to be the most badly impacted during this period of market volatility. Moreover, the extreme market disruption has provided him with opportunities to invest in quality companies at very depressed prices. This augurs well for the future," he added.
Robins also noted the board will undergo a reshuffle due to several members - including himself - serving nine years.
He will stand down at next year's AGM, while Laurence Magnus will step down after the May AGM and Philip Kay is stepping down as senior independent director, but will stay on the board until the 2022 AGM.
Shares in Fidelity Japan Trust were marginally higher in London on Wednesday in midday trading at 134.79p each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Fidelity Japan Trust (FJV)