Fidelity Asian Values Regulatory News (FAS)

Fidelity Asian Values (FAS)

28/10/2025

Results analysis from Kepler Trust Intelligence

Fidelity Asian Values (FAS) has released its annual results for the year ending 31/07/2025, with a NAV total return of 12.4%, beating its benchmark which returned 7.1%. FAS also outperformed its peer group average return of 7.8%.

Contributors to outperformance stem from a wide range of sources. The top contributor was a semi-conductor firm benefiting from the AI boom, second was an Australian gold mining firm and third was a long-held Vietnamese apparel manufacturer.

Gearing added an additional 250bps to relative performance, though the level was reduced over the period, reflecting the market recovery leading to higher valuations. Derivatives were used to short stocks which also generated additional alpha in the year.

FAS' share price performed well, leading to the discount trading at its narrowest point at the year end. This trend has continued since giving the trust the narrowest discount in the peer group. This has been aided by share buybacks, which added c. 70bps to NAV and have continued post results.

The trust announced a 41.4% increase in its dividend, driven by increase in underlying revenue as well as changes to the charging structure, now split across the capital account and to revenue.

Chair Clare Brady reflected on the good performance, highlighting that the trust: "Has been able to do so well against a backdrop of turmoil and extreme volatility [which] speaks to the fact that the fund offers investors excellent risk diversification" whilst also remaining positive on the outlook, noting the managers "continue to see good prospects for their portfolio of undervalued, quality businesses."

Kepler View

We believe these results are a strong validation of managers Nitin Bajaj and Ajinkya Dhavale's approach, with their contrarian mindset capturing market turning points that have been a feature of the period under review. Asian markets have been through considerable changes in the past year, and the managers' positioning in this environment was favourable, albeit purely a function of their bottom-up, stock selection focus, which has proven its worth. This has reinforced FAS' long-term outperformance of its benchmark which we believe demonstrates the quality of the approach.

Furthermore, the managers remain optimism for the future. Whilst the asset classes' aggregate valuations are at or above long-term averages, Nitin and Ajinkya's portfolio is trading considerably lower than the market on average. The trust's positioning remains highly differentiated too, especially with an allocation to China's 'old economy' stocks and to Indonesia. As such, we believe FAS is a unique proposition that offers diversification benefits and upside potential.

The improved dividend outlook has also been positive in our view. The tweaks to how charges are attributed are small, but have improved the long-term income potential considerably as more can be passed on as dividends, further adding to the trust's appeal.

These factors may well have contributed to the trust's discount narrowing. We think this creates attraction to both the recovery in the region, and the successful strategy of FAS' managers.

CLICK HERE TO READ THE FULL REPORT  Visit Kepler Trust Intelligence for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.