Last checked at 26 Aug 2020 09:07
London, UK, 26 August 2020
Edison issues review on Fidelity Japan Trust (FJV)
Fidelity Japan Trust (FJV) targets long-term capital growth by investing in Japanese companies. Manager Nicholas Price believes the Q120 market sell-off created attractive opportunities to invest in companies that have been overlooked, but which will emerge from the pandemic with greater market share and superior long-term growth prospects. FJV is overweight in technology and IT-related sectors, where the manager expects selected companies will continue to benefit from 5G and coronavirus-driven demand for tech products and related services. The trust has performed strongly in absolute and relative terms in recent months and has outperformed its index, and the UK market, over most periods.
The board recently announced a plan to target a single-digit discount in normal market conditions. As at 24 August 2020, FJV's shares traded at a 10.1% discount to NAV. This is slightly wider than the averages of 9.4% and 9.9% over one and three years respectively, but narrower than the longer-term averages of 11.8% over five years and 12.4% over 10 years. The board's new discount target, supported by share purchases where appropriate, has the potential to underpin a re-rating of FJV by investors.
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